Oil Prices Have Fallen to the Lowest Level in A Month
Oil prices fell sharply on Friday, with the price of US oil dipping below $ 40 a barrel for the first time in a month.
The fall follows a sell-off on the stock markets on Wall Street and the appreciation of the dollar. There are also concerns in the oil market about the increasing number of corona infections in many countries, which could put pressure on the oil demand again.
The price of a barrel of American oil (159 litres) became more than 4 percent cheaper in New York at $ 39.71, and Brent oil fell 3.3 percent to $ 42.61 a barrel. With that, oil prices are on track for the worst week since June.
The stronger dollar will make it more expensive for traders with other currencies to buy oil and thus weaken demand. In addition, major oil producers are united in the OPEC oil cartel and allies such as Russia are working to increase production, which ensures more generous supply on the oil market.
Experts also point to the fact that last summer Americans made far fewer trips by car, which is usually a popular activity in the United States. But because of the coronavirus and the restrictive measures against the virus outbreak, far fewer trips by car were made by Americans, with less demand for fuel.