On November 19 Brent crude oil fell to $78.7 per barrel. The reason for the decline in quotations was fears about the introduction of another lockdown in Europe. This could have a detrimental effect on the economic recovery and demand for fuel.
January futures for Brent crude oil fell by more than 2.5% on the ICE exchange. WTI product prices on the New York Mercantile Exchange also fell 2.7%.
News platform Reuters notes that the worsening pandemic situation could lead to a decline in demand for fuel. This provokes a drop in oil prices. Large oil-importing countries, such as China and the United States, could make the situation worse. So, the United States is negotiating with other countries about their intention to release fuel from their reserves to compensate for the shortage of energy carriers. Such measures would also allow to temporarily restrain the growth of energy costs.
Despite the current situation on the commodity market, the Central Bank of America experts suggest the possibility of lifting the price of Brent oil to $120 per barrel by the middle of next year.