Oil prices fell in demand concerns on Thursday, Oct. 29, as more and more countries introduced quarantine measures due to COVID-19, while U.S. stock prices rose after the collapse of the previous day.
Oil prices fell by more than 3% during the trading session, but initially fell by as much as 5%.
“The new quarantines have caused an uptick in the oil market since yesterday,” he said Rystad Energy Bjørnar Tonhaugen, Head of Oil Markets.
“As a result of the new quarantines, demand for oil will decrease (..). Prices are now falling naturally due to these gloomy forecasts,” he added.
However, stock prices rose on Wall Street. Apple, Amazon, Facebook a Google parent company The Alphabet stock prices rose.
U.S. gross domestic product (GDP) increased 33.1% year-on-year in the third quarter of this year, recording the fastest growth since data collection began in 1947, according to preliminary data from the US Department of Commerce released Thursday.
In the second quarter, the US economy contracted 31.4% year-on-year, the sharpest decline ever,
but fell 5% in the first quarter, cutting 11 years of growth.
Economic growth in the last quarter has been driven primarily by rising consumer and business spending, thanks to the US government’s extensive economic stimulus program. The US government had advanced nearly $ 3 trillion in economic aid measures to try to mitigate the effects of the pandemic.
Analysts have warned that the failure to adopt a new economic stimulus package will leave the US economy vulnerable in the fourth quarter, especially if the COVID-19 pandemic escalates in the US.
US Stock Exchange Index Dow Jones Industrial Average on Thursday rose 0.5% to 26,659.11 points, the index 500 Standard & Poor rose 1.2% to 3310.11 points, while the index Nasdaq Composite increased 1.6% to 11,185.59 points.
The FTSE 100 London Stock Exchange index fell less than 0.1% to 5581.75 points on Thursday, the Frankfurt DAX 30 stock exchange index rose 0.3% to 11,598.07 points, while the Paris CAC 40 stock exchange index fell 40 less than 0, 1% to 4569.67 points.
While trading the New York Stock Exchange electronically, the price of WTI crude oil fell 3.3% on October 29 to USD 36.17 a barrel. Brent The price of crude oil fell 3.8% to $ 37.65 a barrel on the London Stock Exchange.
The euro against the US dollar fell from 1.1796 to 1.1672 euro dollars on Thursday, the British pound against the US dollar fell from 1.3044 to 1.2926 dollars per pound, and the US dollar against the Japanese yen rose from 104.42 to 104.60 yen per dollar. The euro against the British pound fell from 90.43 to 90.34 pence per euro.