Oil falls on demand fears.
Brent crude oil falling sharply today – already down 5.46% at the time of the writing – extending the yesterday’s sharp decline on the potential impact the new coronavirus lockdowns will have on oil demand. With coronavirus cases surging at geometric rate across Europe, France will require people to stay at home from Friday, while Germany will shut bars, restaurants and theatres from Nov. 2 until the end of the month. The reintroduction of the strict lockdowns across the Europe is beginning to raise concerns for oil demand across Europe – which is adding to the bearish pressure on Brent crude oil. The price today broke the key support at 39.00 – which triggered multiple quant funds to participate in the sell-off.
Expect sellers on upward corrections
Next support to watch – 37.00 (monthly low from June)
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