Global oil prices dropped on November 22 morning, with the price of Brent falling below $78 a barrel for the first time since early October, according to trading data, Report informs citing Prime agency.
As of 8:46 (GMT+4), the price of January futures for Brent crude oil fell by 0.2%, to $78.74 per barrel, while earlier it dropped below $78 for the first time in almost two months. January futures for WTI oil dropped by 0.04% to $75.91 per barrel.
Oil prices continue their moderate decline after the strongest weekly drop since August - over the past week, Brent lost 36%, and WTI saw a 5.8% decrease. The pessimism was fueled by concerns over demand amid a new surge in coronavirus incidence.
In addition, traders are assessing the possibility of an overabundance of crude in the market due to the likely release of oil from strategic US reserves. Japan is also considering such a measure, according to media reports. However, analysts consider this unlikely.
“The US has been talking for a few weeks but they have done nothing,” said Vandana Hari, founder of Vanda Insights, referring to the release of strategic reserves. “The fact they did not do it at multi-year peaks is a sign they’re unlikely to make the move. Oil prices are sliding due to the outbreaks in Europe, that means pressure is already easing.”