InvestorQ : Why did oil prices fall in the last few days in the Brent market?
prachi Patwardhan made post

Why did oil prices fall in the last few days in the Brent market?

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sara Kunju answered.
2 months ago
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Oil prices are normally driven by the demand side and the supply side. While bounce from lower levels is driven by supply factors, spike at higher levels is normally driven by demand factors. In the last few days, the price of oil has slumped to their lowest level in 2 weeks. This was on the back of sharp jump in US crude inventories at its largest energy storing base in Cushing in Oklahoma, which is the global benchmark for inventories.

In addition, there are also demand factors. For example, the fresh outbreak of COVID-19 cases in Europe, Russia and China has raised questions over oil demand. Brent Crude fell by to $83.64/bbl after touching a peak of $87/bbl. Even the US based WTI Crude has come down 1.1% to $81.77/bbl. Even the US economy is expected to grow at the slowest rate in the last 12 months post-COVID and that is raising questions over demand factors.

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