Markets tremble for second wave of Covid-19: stocks and oil fall sharply

The FTSE 100 index of the London Stock Exchange fell 3.3%, while Frankfurt and Paris lost 3%. In Madrid, the IBEX-35 sank more than 3.5%. On its side, Milan fell 3.3%.

“The markets Europeans are suffering heavy losses from health concerns and lockdown fears, “said CMC Markets UK analyst David Madden.

Almost one million inhabitants of the Madrid region must “stay at home as long as possible” as of this Monday to stop the second wave of the pandemic. For its part, the United States is approaching 200,000 deaths from coronavirus.

Petroleum

Crude prices fell on Monday, weakened by a possible return to production in Libya and an increase in coronavirus cases that raised fears about global demand, although the market received support from a tropical storm that threatened to interrupt pumping in the Gulf of Mexico.

Brent crude was down 78 cents at $ 42.37 a barrel, heading for its biggest daily decline in two weeks. Crude futures in the United States were down 84 cents at $ 40.27 a barrel.

Workers in Libya’s Sharara field have restored operations, two engineers at the site said, after the National Petroleum Corporation announced the partial lifting of force majeure. But it is not clear when or at what level production could be restarted.

“In the past, Libya has proven relatively adept … at bringing production back to around 1 million bpd. However, the state of its oil infrastructure is a challenge to overcome,” said the BNP Paribas analyst. Harry Tchilinguirian.

“(The) oil market is facing a fork in the road this week when it comes to prices, and the option you choose will largely depend on how much real progress is made in Libya,” he added.

Goldman Sachs stuck to its forecast that Brent will hit $ 49 a barrel by the end of the year and $ 65 before the third quarter of next year, despite news from Libya. Barclays raised its 2020 Brent outlook to $ 43 and $ 53 next year.

The bullish mood is supported by hopes for better compliance with a production cut deal between members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, but an increase in coronavirus cases could reduce demand.

More than 30.78 million people have been infected by the new coronavirus, a Reuters count shows, and British Prime Minister Boris Johnson was considering a second national quarantine on Monday, with cases in Spain and France as well. have increased.

Tropical Storm Beta, the 23rd named storm in the Atlantic hurricane season this year, was moving down the US coast of the Gulf of Mexico, threatening production and putting prices down.

.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.