Oil goes down after the news of the second coronavirus wave
Oil prices dropped on May 11. The market is impacted by anxiety over continuous glut and general economic depression that negates global supply reduction.
By 04:31 GMT Brent crude lost 0.9% - 29 cents - and stood at US$30.68 per barrel. US WTI futures lost 0.7% - 17 cents - and was at US$24.57.
Last two week both major benchmarks saw some growth as the containment measures around the world began to ease off and some positive economic data emerged. Global oil output cuts also helped/
And yet the first signs of the second wave of the virus in China and South Korea caused anxiety among traders. According to the Goldman Sachs analysis, many investors are still worried that demand will remain depressed in the next year, as the second wave of the crisis might cut any growth in travel short.
Since the start of the pandemic oil demand around the world crashed by around 30%. Concerns over storage space in the US dropped the market further down, driving the prices into negative for the first time in history.