2 November 2020
Image Released, Getty Images
—
–
On Monday, oil prices recorded their lowest level in five months after the new closures caused by the Corona virus.
–
A number of economies have tightened social restrictions, including Britain, France and Germany, which are fighting at the same time the increasing rates of infection.
–
It is feared that the new lockdown measures will further affect economic growth, and demand for oil will decline.
–
The commodity and equity markets are also in a state of tension, as the US presidential election this week approaches.
–
The price of Brent crude, in trading hours in the Asian markets, fell to its lowest level, reaching $ 35.74 a barrel, a level not seen since late May.
–
Brent crude, the main benchmark for oil prices, fell 45 percent from the start of the year.
–
The virus-induced slowdown has weighed on energy companies, with BP and Shell announcing thousands of job cuts this year.
–
BP plans to cut 10,000 jobs, after a drop in demand, while Royal Dutch Shell said it expects between seven to 9,000 jobs.
–
Election fears
–
The price of US crude oil was also hit hard, as it fell by 7 percent on Monday, bringing the price of a barrel to $ 33.64.
–
Fears of an intensely contested presidential election this week, and the absence of sustained US fiscal stimulus, have led to a bleak economic outlook.
–
Image Released, Getty Images
—
–
“No matter which way you look at it, next week will be a huge event for the US and global markets,” said Simon Ballard, chief economist at First Abu Dhabi Bank.
–
“We see the possibility of a sharp rise in volatility around these events, all in the context of deteriorating conditions for COVID-19 in most of the United States, Europe and elsewhere,” he added.
–
China remains the most optimistic market for economic growth this year.
–
The world’s largest importer of crude oil said on Monday it would raise its stake for 2021 by 20 percent for companies that are not owned by the state.
–
This came after activity in the Chinese factory sector accelerated at the fastest pace in nearly a decade in October, as domestic demand increased.
–
This is what was reported by the media on the PMI, a special survey that focuses on small and medium-sized companies.
–
Last month, China continued its recovery from the epidemic with strong economic growth during the third quarter, according to official figures.
–
And China, the second largest economy in the world, reported growth of 4.9 percent between July and September, compared to the same period last year.
—
