Oil prices rise on Monday after a significant fall on Friday and following the results of the entire past week.
Market fears associated with a possible decrease in demand for energy resources in the world remain, and this factor is likely to continue to put pressure on the oil market, Bloomberg notes.
Chinese President Xi Jinping, speaking at the 20th Congress of the Chinese Communist Party (CCP), which opened on Sunday, signaled that the country’s authorities would continue their tough policy to contain the spread of COVID-19, which has already seriously weakened the country’s economy this year.
The cost of December futures for Brent crude on the London ICE Futures exchange by 8:10 pm on Monday is $92.31 per barrel, which is $0.68 (0.74%) higher than the closing price of the previous session. As a result of trading on Friday, these contracts fell by $2.94 (3.1%) to $91.63 per barrel.
The price of futures for WTI oil for November in electronic trading on the New York Mercantile Exchange (NYMEX) rose by this time by $0.62 (0.72%), to $86.23 per barrel. By the close of previous trading, the value of these contracts fell by $3.5 (3.9%) to $85.61 per barrel.
As a result of last week, Brent fell by 6.4%, WTI – by 7.6%.
“The momentum we see today is likely to be short-lived as there is no clear reason for a rally,” said Vanda Insights founder Vandana Hari. “Investors may now be seeing profitable opportunities in the market after last week’s sharp drop.”
