The oil prices fall this Monday due to the outbreak of the coronavirus in Europe and the United States, the consequent reconfirmations and curfews and what this represents for the economy, and Libya’s decision to increase its crude oil production at a time of uncertainty about the question.
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At 9:02 in the morning Colombian time, the reference Brent in London it fell by 2.68% to $ 40.65 per barrel, while the WTI in New York was trading at 38.75 dollars a barrel, 2.66% less than at the opening of the day.
The impact of the downside was evident this morning on the Colombian stock exchange, where Ecopetrol’s share, around 9:15 am, fell close to 2 percent from Friday’s close.
Similarly, the market for dollar It opened on an upward trend (when oil falls the currency goes up) and around 9:30 am, according to reports from the Bank of the Republic, The average exchange value was 3,809.02 pesos, an increase of 26.36 pesos compared to representative market rate, which is the official price of the day.
Also at the start of the day this Monday, the currency hit the 3,812 pesos levels.
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For the market manager of Rystad Energy, Bjornar Tonhaugen, hoy it’s a “black day” for the oil markets. “Investors are finally evaluating the second wave of covid-19, as infections caused by the pandemic break daily records in many countries around the world,” Tonhaugen said.
The expert believes that a possible vaccine, expected early next year, “It won’t save oil demand in the short term and the market is increasingly worried”. Furthermore, he believes that the stagnation of negotiations in the United States to approve a new fiscal stimulus “does not help”.
On the other hand, Libya continues its advance to recover its production and increase it to one million barrels a day in early December and today the National Petroleum Company of Libya (NOC) announced the lifting of the “state of” force majeure in the Al Fil field, the second most important in the west of the country.
This measure is in addition to similar measures taken last week in the oil ports of Sidra and Ras Lanuf, the most important in the Gulf of Sirte, the heart of the Libyan oil industry.
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With information from EFE