Commodities

Tensions For Oil Demand Recovery Gets Firm, Prices Decline

Tensions-For-Oil-Demand-Recovery-Gets-Firm-Prices-Decline

On Tuesday, oil continued its downtrend rally, marking its biggest fall since June 15, primarily due to the crude demand recovery concerns among investors and plunging equities, heavily souring the market sentiments.

The UK’s Brent crude plunged 7.6%, settling the day below $40 for the first time in three months while the oil futures in the US slipped 1.2%. The drastic fall is due to over oil output & supply from OPEC+ nations, muted demand from Asian countries, and US summer driving season coming to climax.

Meanwhile, the COVID crisis is in no mood to get slow, and experts predict that it will at least take three years for oil to get back to its pre-pandemic demand level if some vaccine is found.

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