Oil Markets Drop on Libyan Production Restart

Ibeth Rivero

The West Texas Intermediate crude oil futures dropped 4.19 percent on Monday's session, closing at the 39.31 level.

Crude OilYesterday, oil futures markets dropped in light of the Libyan crude return to the market, and as coronavirus cases increase in Europe.

The markets recently learned that Libyas National Oil Corporation will restart oil production from some fields that they consider "safe" and begin exporting it. Those fields that are free of the presence of insurgent groups will resume their operations as soon as possible, while those that are still being controlled by them will remain closed.

This boosted worries for oversupply in the markets, which could put greater downward pressure on the prices, which are already suffering the effects of the Covid-19 sanitary crisis in the demand level.

Some countries in Europe are facing a rise in Covid-19 cases, among them the UK, Belgium, and Albania. Other countries are already facing a second wave of the virus, like France and Spain. According to the World Health Organization, a very serious situation is currently unfolding in the continent.

At the moment, there are 4,487,596 reported total cases in Europe, as well as the death toll of 216,729. In the world, there are 31,490,311 reported coronavirus cases, as well as 969,362 total deaths. The United States leads in the number of infections, with 7,046,216 total cases and 204,506 total deaths, followed by India, Brazil, and Russia.

The West Texas Intermediate crude oil futures dropped 4.19 percent on Monday's session, closing at the 39.31 level. In the same way, Brent oil futures went down by 3.38 percent, closing the session at the 41.44 level.

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The US stock markets mainly closed in negative territory. The Dow Jones Industrial Average dropped by 1.84 percent during the session, closing at the 27,147.70 level, while the S&P 500 dropped 1.16 percent, closing the session at the 3,281.06 level. In the same way, the NYSE composite dropped by 2.12 percent during the session, closing at the 12,561.78 level. On the other hand, the Nasdaq 100 advanced 0.40 percent during the session, closing at the 10,980.22 level.

Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

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