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Brent hits 3-week low on global demand worries

Economies.com
2020-10-26 13:20PM UTC

Brent crude continued to fall as the US market opened on Monday, extending losses for the second straight day, and hit a 3-week low, amid demand concerns due to the second wave of the coronavirus, in addition to rising Libyan output.

 

Brent fell 2.75% to the lowest since October 5 at $40.38, after opening at $41.52, and hit a high of $41.60. 

 

Brent futures lost 1.75% on Friday, the second daily loss in 3 due to global demand concerns.

 

Oil prices lost 2.5% during the last week, posting the first weekly loss in 3 weeks, as the global demand concerns offset OPEC-Plus' pledge to support the market.

 

The US reported the highest number so far of new Covid-19 infections in two days on Saturday, and new cases in France rose to over 50,000 cases per day on Sunday.

 

The Spanish government declared a new state of emergency, and Italy ordered restaurants and bars to be closed by 6 pm.

 

These developments are indicators of the second wave spread, which threatens any fuel demand recovery.

 

The National Oil Corporation in Libya ended the oil port blockade, and said that production will reach 1 million barrels per day within a month, which is faster than expected.

 

Daily production in Libya jumped to about 500 thousand barrels per day, and expectations indicate that production will double by the end of the year, after the receding of the armed military conflict in the country.

Gold attempts recovery from 2-week low, shrugs off rising dollar

Economies.com
2020-10-26 12:02PM UTC

Gold prices rose on Monday, within recovery attempts from a 2-week low, to head for the first gain in 3 days, amid safe-haven demand, despite the US dollar's rise against its peers.

 

Gold rose 0.2% to $1,905.77, after opening at $1,905.77, and hit an intraday low and the lowest since October 15 at $1,891.37.

 

The yellow metal closed lower by 0.1% yesterday, posting its second daily loss due to improved risk appetite.

 

Gold prices gained around 0.25% during the past week, posting the third weekly gain in a month, based on a weaker dollar.

 

Gold prices are being lifted today by rising safe-haven demand, amid renewed concerns about the global economy after a record increase in Corona injuries in the United States and Europe, and fears before the US presidential elections.

 

The dollar index rose more than 0.3% today, to head for its second gain in 3 days, which weighs down on the prices of gold and other dollar-denominated metals.

 

The US dollar shined as the best alternative investment, due to doubts about the US passing the new Covid-19 aid package before the presidential election next week.

 

Gold stocks at the SPDR ETF fell 1.75 metric tonnes on Friday, in the fourth daily drop, to reach the lowest level since September 18 at 1,263.80 metric tonnes.

Dollar rises on global economic concerns, US stimulus doubts

Economies.com
2020-10-26 12:46PM UTC

The US dollar rose on Monday, to head for its second gain in 3 days, as demand increased due to investors' risk-aversion after the sharp spike of coronavirus infections in Europe and the US, in addition to doubts about the US passing the new Covid-19 aid package before the presidential election next week.

 

The dollar index rose 0.3% to 93.07 points, after opening at 92.76, and hit an intraday low at 92.74.

 

The index lost 0.2% on Friday, after rising by 0.3% on Thursday, within recovery attempts from a 7-week low of 92.47 points.

 

The dollar index lost more than 1% during the past week and posted its third weekly loss in a month, and the largest weekly loss since July.

 

This came due to strong market sentiment, which propelled demand for high-risk currencies, after progress was made in the ongoing political talks about the US second fiscal stimulus package.

 

France reported a record rise of new Covid-19 cases on Sunday, which rose to over 50,000 cases per day, and Italy ordered restaurants and bars to be closed early, while the Spanish government declared a nationwide curfew.

 

The US reported on Friday that Covid cases rose more than 83,000 cases, the highest number so far since mid-July.

 

These developments are indicators of the second wave spread, which threatens any economic recovery that happened after the first wave.

 

US House of Representatives Speaker Nancy Pelosi said on Sunday that she will have some answers from the White House on Monday regarding a coronavirus stimulus deal.

 

These statements alongside few signs of progress in the political talks about the stimulus package indicate that the deal will not be launched before the US presidential election.

European stocks fall near 4-week low as Covid-19 cases jump to record

Economies.com
2020-10-26 12:26PM UTC

European stocks fell in early trading on Monday, to drop near a 4-week low, and resume losses after hitting a pause on Friday, due to investors' risk-aversion after the sharp spike of coronavirus infections in Europe and the US.

 

The Stoxx Europe 600 index fell 1.8% as of 11:45 GMT, after it closed higher by 0.6% on Friday, and posted the first gain 5 days within recovery attempts from a 4-week low of 356.43 points.

 

The index lost 1.5% during the past week, posting the second straight weekly loss, on risk aversion due to concerns about the European economic recovery and doubts about the US stimulus package.

 

The pan European index opened lower today, to drop near a 4-week low, with most of the major European markets and sectors seeing red today.

 

The tech sector saw the largest losses in Europe today, dropping nearly 5.0%, after the German company SAP cut its full-year business outlook, and warned of a slower-than-expected recovery from the coronavirus impact, which pushed its sharer to lose more than 16%.

 

France reported a record rise of new Covid-19 cases on Sunday, which rose to over 50,000 cases per day, and Italy ordered restaurants and bars to be closed early, while the Spanish government declared a nationwide curfew.

 

The US reported on Friday that Covid cases rose more than 83,000 cases, the highest number so far since mid-July.

 

S&P 500 futures fell over 1.1%, after closing higher by 0.3% on Friday at Wall Street, posting the second straight daily gain.

 

Back to Europe, the Euro Stoxx 50 index fell more than 1.8%, France's CAC 40 fell 0.8%, Germany's DAX fell 2.5%, and the UK's FTSE 100 lost 0.3%.

Frequently asked questions

What is the price of Brent Oil today?

The price of Brent Oil is $68.30 (2025-07-06 00:24AM UTC)