Oil becomes cheaper for five days in a row. Until Thursday, however, it was only a gradual decline in the price of a barrel of black gold. The fall fell by seven percent on Thursday, and oil soon reached the level of $ 60 per barrel.
Behind the sharp fall in oil prices is a rise in fears of another wave of the coronavirus epidemic in Europe. More specifically, the growing risk that many European countries will be forced to re-shut down their economies or delay the easing of anti-epidemic measures.
The reduction in oil prices was also due to the suspension of coronavirus vaccination from AstraZeneca’s workshop in some European countries. To some extent, this fulfills the forecasts of the OPEC + group, according to which demand for oil is growing, but this growth is still very fragile. Brent crude was trading just below $ 70 a barrel last week.
It has risen in price by more than 30 percent since the beginning of this year, but recent developments suggest that it will fight for a $ 60 target. The US dollar may also play a role, tending to strengthen in recent days, which could send oil to even lower levels.
