Oil prices fell yesterday, ignoring the weakening of the US dollar, as tensions increased between the United States and China, in light of the rise in the incidence of new coronavirus (Covid 19).
Brent crude fell 25 cents to $ 43.06 a barrel, while West Texas Intermediate U.S. crude fell 28 cents to $ 40.79.
In turn, the dollar fell to a 22-month low against a basket of currencies.
Usually a weak dollar encourages the purchase of commodities priced in the American currency, such as oil, because they become cheaper for holders of other currencies.
According to economists in a poll conducted by «Reuters», the prospects of the US economy were bleak last month in light of renewed public isolation measures in some states, due to the high incidence of HIV infection.
The number of Americans applying for unemployment benefits reached 1.416 million last week, rising unexpectedly for the first time in about four months, indicating the stagnation of the American economy's recovery in light of a new rise in the "Covid-19" injuries.
While the high number of casualties is fueling concerns about renewed government public isolation measures, fears that oil demand will be hit by tensions between the United States and China, the world's two largest oil consumers.
Barclays Commodities Research said that oil prices may witness a correction in the near term if the recovery in fuel demand slows further, especially in the United States.
The bank reduced its forecast for the oil market surplus for 2020 to an average of 2.5 million bpd from 3.5 million bpd previously.