Just three weeks ago, a barrel of Brent crude was trading at less than $83. However, since the end of September, oil has experienced a permanent increase in price, when its price came close to the hundred-dollar mark. Now the tables may have turned.
Brent crude fell dramatically in Tuesday’s trading session. It fell by more than 2.5 percent to $93.55 from the almost $100 level. This is the first price reduction of black gold since the beginning of this month, or the end of last month.
Coronavirus on the rise
The price of oil was sent down by two bad news. The first one came from China, where the spread of the coronavirus is accelerating again, which spooked investors. If China falls into further lockdowns, it will undoubtedly slow down its economy and thus its demand for oil.
The IMF worsened the economic outlook
The second bad news came from the International Monetary Fund, which worsened the global economic outlook for next year. The world economy will not grow by 2.9, but only by 2.7 percent. The economies of rich countries will develop the slowest, Germany and Italy will even experience an economic decline. India will maintain its position as the fastest growing economy with more than six percent GDP growth.
