Crude oil exchange rate declines amid fears of a new wave of coronavirus


The price of oil fell rapidly amid an increase in the number of COVID-19 infected, a stronger dollar, and expectations of reduced demand for fuel. On the ICE London exchange, the price of futures for Brent oil for September was $66.07 as of 17:32. On August 19, 2021, the September futures rate for this fuel brand fell below $66, which was last seen in May 2021. 

Brent crude oil rate August 12-19, 2021

The decline in oil prices is due to several negative aspects:

  1. New aggressive strains of the coronavirus are spreading rapidly. At the same time, the effectiveness of already developed vaccines against new forms of the virus turns out to be lower than expected. 
  2. Against the background of increasing numbers of COVID-19 cases, the demand for fuel may be decreasing. This is associated with the possibility of new lockdowns.
  3. The Fed officials allow the possibility of stopping the asset purchase program in 2021. 

According to experts, until the epidemiological situation gets better, the price of oil with high probability will not exceed $70 per barrel.

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