Crude oil futures settled at near 3-month lows on Tuesday as prices fell sharply amid renewed worries about outlook for energy demand.
Rising tensions between the U.S. and China, a stronger dollar and reports showing a sharp spike in coronavirus cases across several parts of Europe sent crude oil prices crashing down in today’s session.
West Texas Intermediate Crude oil futures for October ended down $3.01 or about 7.6% at $36.76 a barrel after hitting a low of $36.13 in the session.
Brent crude futures were lower by $2.25 or about 5.5% at $39.76 a barrel.
Concerns about excess supply in the market following OPEC+ relaxing production curbs from last month, and fears of a drop in energy demand due to surging virus cases across the world weighed on the commodity.
The U.S. dollar firmed up against most major currencies today. The dollar index rose to 93.48 by mid morning, and despite paring some gains subsequently, was still up nearly 0.7% from previous close.
U.S. and European stocks tumbled as well. On Wall Street, the tech-laden Nasdaq Composite Index plunged 3.7%. The Dow slid 2.1% and the S&P 500 fell 2.58%.
Meanwhile, traders looked ahead to weekly inventory data. The American Petroleum Institute will release its weekly report on Wednesday evening, while the Energy Information Administration will come out with its inventory data Thursday morning.
The material has been provided by InstaForex Company – www.instaforex.com