Black commodity trading is heading for its biggest monthly decline since March, with crude oil prices falling to a four-month low as the prospect of fuel demand recovery slows down with rising coronavirus cases around the world.
This has sparked market concerns over the recovery of global oil demand, thus causing oil prices to plummet lower.
US WTI crude futures fell to their lowest level since mid-June at $ 34.92 a barrel before trading back stable at $ 36.38 a barrel today.
Brent crude futures plunged to $ 36.64 a barrel in the previous session, a five-month low and then traded around $ 37.87 a barrel in today's trading session.
On Wednesday, France announced a nationwide closure until December 1, with everyone being ordered to stay home except for important and non-essential business will close for 2 weeks before a decision is made as to whether it will reopen.
Meanwhile, Germany will implement a partial closure for 1 month where all restaurants and bars need to be closed.
In addition, oil prices were also hit by a significant surge in US crude oil supply which increased by 4.3 million barrels last week, according to data released by the Energy Information Administration (EIA).
The fall in oil prices has raised the question of what action OPEC will take to address the fall in the crude oil market.
