By Masood Sattar Khan
(Pakistan News & Features Services)
Oil prices fell five percent on October 2 after the US President, Donald Trump, tested positive for COVID-19 and negotiators failed to agree a US stimulus package just as rising global oil output threatened to overwhelm a weak price recovery.
Brent crude was reported to have slipped on the Trump news and was down $2.05, or 5.01 percent, at $38.88 a barrel by 1324 GMT. US oil was down $2.01, or 5.19 percent, at $36.71.
According to reports, the US and Brent crude were heading for drops of around nine percent and seven percent respectively this week for a second consecutive week of declines.
“US unemployment data was a little bit below expectations but the oil price fall is part of the broader correction we’ve seen over the last few days driven by bearish macro sentimentand technical trading,” Harry Tchilinguirian, head of commodity research at BNP Paribas, was quoted as saying.
“We’ve moved below several short-term moving averages, 30, 50 and 100-days, so the market is looking for the next support level, which could be around $37 a barrel,” he added.
