WTI consolidates losses near three-week lows at $37

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  • WTI futures plunge nearly $2 to three-week lows at $37.00.
  • Oil prices dive on concerns about the consequences of second COVID-19 wave.
  • The EIA reports an increase in US oil stocks.

Front-month WTI futures have depreciated nearly $2 on Wednesday, retreating to tree-week lows at $37, with upside attempts limited below $37.45.

Oil prices plunge o concerns about new lockdowns

The US benchmark oil index has plunged about 5.5% on the day amid market concerns that the measures to curb the second coronavirus wave will depress demand for crude.  

News about the growing number of infections in Europe and in the US, which have surged to fresh record levels, and the new lockdowns imposed in France and Germany have sent oil prices and equity markets plummeting. 

Furthermore, the US Energy Information Administration reported earlier today that the number of US oil stocks increased above expectations in the week of October 23 on the back of a record increase in production. This has increased negative pressure on oil.

Likewise, the UK benchmark Brent crude has plunged about 5%, to hit fresh four-month lows below $38.80.

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