📉Oil drops 5% on demand fears🛢

Oil price fell amid mounting concerns about fuel demand recovery

Crude oil prices slumped on Tuesday as fears regarding the pace of oil demand recovery resurfaced once again. WTI dropped below $ 38.50 per barrel and Brent fell below $40.90 per barrel as the spread of the coronavirus pandemic does not show signs of abating and as the global COVID-19 death toll crossed the 1 million mark.  At the same time, investors remained cautious ahead of API data to be released later in the day, as well as the first US presidential debate between Donald Trump and Joe Biden. Also recent news that Libya may increase its oil production to 250 000 barrels per day weighed on market sentiment.

WTI Crude (Oil.WTI) dropped more than 5% during today’s session. Price broke below the major support level at $39.10. Should downbeat moods prevail, next support at $37.31 per barrel may come into play. Source: xStation5

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