Oil set for 20% drop in 2020

08 Jan, 2021
REUTERS/Brendan McDermid

Global crude oil markets have lost about a fifth of their value in 2020 as strict coronavirus lockdowns paralysed much of the global economy, but prices have rebounded strongly from their lows as governments rolled out stimulus.

Brent and WTI have more than doubled from decade lows seen in April, putting past a year which marked the first negative prices for WTI that shocked investors globally.

The dollar was ending the year in a downward spiral, with investors putting more money into riskier assets and as the United States printed more money to fund its swelling budget and trade deficits.

Global commodity markets are poised to end 2020 on a strong note, with recovering demand and widespread stimulus packages buoying prices.

Roll-outs of vaccines to combat the virus and trillions of dollars’ worth of fiscal support are expected to boost investment and spending in 2021.

Source: Reuters

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