Oil prices fell again in Asia on Monday when the market opened after their recovery last week, fears of overproduction and lack of storage capacity resurfacing.
In the first exchanges Monday morning, a barrel of West Texas Intermediate (WTI) American lost about 8% to 18.19 dollars per barrel. As for the barrel of Brent from the North Sea, it fell by 3% to 25.56 dollars.
Oil prices had finished in scattered order last week when an agreement was supposed to enter into force which would drastically lower the production of black gold in the world and restore a little balance to a market which is crumbling under the barrels, and while several major world economies plan to deconfinate and restart.
Chilliness
However, the reluctance took hold of the market again on Monday, according to operators, who however believe that prices should start rising again soon.
“With this deeply distressed demand, any sign of rebalancing, whether through economic recovery or forced or agreed production cuts, should keep oil prices at their current levels”, said Stephen Innes, strategist at AxiCorp.
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