Oil prices fell yesterday, at a time when Bank of America data showed that investors rushed to invest in equity and bond funds.
Oil prices fell, after the number of new cases of Corona virus (Covid 19) increased in the United States, which raised the possibility of a second wave of the virus outbreak, which damages demand in the world's largest consumer of crude and fuel.
And "Brent crude" fell 1.34 dollars, or 3.5%, to 37.21 dollars a barrel, after it fell about 8% in the previous session. The "West Texas Intermediate" US crude fell 1.37 dollars, or 3.8%, to 34.97 dollars a barrel, after falling more than 8%, the day before yesterday, Thursday.
The benchmarks are heading towards the first weekly decline in seven weeks, with "Brent" and "West Texas Intermediate", at a time when stocks are pressuring prices as well.
Greg Brady, director of global energy and the Middle East at the Stratfor Center for Studies, said: "US stocks rose, contrary to the expectations of many analysts, at a time when (Covid-19) cases show signs of a second wave in the United States and elsewhere."
Producers from the United States, as well as from the Organization of Petroleum Exporting Countries (OPEC) and allies, in what is known as the "OPEC Plus" group, cut supplies, and some do so in record quantities.
OPEC Plus countries cut supplies by 9.7 million barrels per day, equivalent to about 10% of the demand before the pandemic, while they agreed, at the weekend, to extend the reduction.
And Brady continued: «It is clear, currently, that the largest reduction of (OPEC Plus), which is 9.7 million barrels per day, will end in late July, to move down to 7.7 million barrels per day».
Moreover, weekly flows data from Bank of America showed that investors rushed towards investing in equity and bond funds, as unprecedented stimulus measures compensated the global markets for most of the losses they incurred as a result of Coffid-19.
The bank indicated that, in the week ending June 10, a huge amount of $ 24.6 billion flowed into bonds, while $ 13.8 billion was transferred to equity funds, the largest amount in nine weeks.
The possibility of a second wave of "Corona" will harm the demand for fuel in America.