Brent Crude sinks to 6-week low of $79.76/Bbl

Brent decreased to a 6-week low of 79.76 USD/Bbl, after OPEC and the International Energy Agency warned of impending oversupply while rising COVID-19 cases in Europe increased downside risks to demand recovery.

Meantime, China said it was moving to release its oil stocks following a report by Reuters that the US was asking major oil consumers like China and Japan to consider a coordinated release of crude reserves to lower prices. The bid by the US administration comes as inflationary pressures start to produce political backlash.

Brent Crude oil is a major benchmark price for purchases of oil worldwide. While Brent Crude oil is sourced from the North Sea the oil production coming from Europe, Africa and the Middle East flowing West tends to be priced relative to this oil.

Source: Trading Economics