The price of oil has dropped below $40
On Wednesday the price of Brent dropped by about 5% , from a peak of $43.1 per barrel to $39.98 per barrel. The U.S. WTI also dropped sharply, from $43.18 per barrel to $37.8 per barrel.
Market participants agree that the decline was caused by data on reserves growth and oil production in the USA. For the first time since March of this year, American oil production has increased to 11 million barrels per day, breaking the trend of decline, which was steadily held throughout the spring. And oil reserves broke the historical record of 540.7 million barrels.
In addition, there has been a sharp spike in the spread of coronavirus infection in the United States. According to the New York Times, on Wednesday more than 35 thousand cases of infection with COVID-19 were recorded in the country, which is the highest figure since April this year. This gave rise to negative sentiments among investors and analysts, who started talking about a longer period of recovery from the crisis and re-adjustment of the global demand.