22-09-2020
Oil prices plunged beyond 4% on Monday, weakening as rising coronavirus cases stoked worries about global demand, and a potential return of Libyan production bolstered oversupply fears.
Crude oil followed other equities and commodities markets in turning risk-averse on Monday as rising COVID-19 infection rates in Europe and other countries prompted renewed lockdown measures, casting doubt over economic recovery.
Brent crude energy futures ‘LCOC1’ settled down $1.71, or 3.96% at $41.44 a barrel. US WTX crude intermediate futures ‘CLc1’ fell $1.80, or 4.38% to $39.31 a barrel. Both contracts were set for their biggest daily drops in two weeks.
Goldman Sachs stuck to its forecast for Brent to reach $49 a barrel by year-end and $65 by the third quarter next year, despite the Libyan developments.