Why are oil prices falling today?
Oil prices are dropping today and there are several reasons investors will want to know more!
The fall in oil prices is coming in the wake of two recent news. The first is the return of fears related to the coronavirus abroad. Europe faces an increase in cases and further restrictions are being placed on unvaccinated people by some countries.
This news means we’ll likely see fewer trips as people stay indoors for fear of the virus. Of course, this also means a drop in demand for gas, resulting in the drop in oil prices that we see today.
But that’s not the only reason oil prices are dropping today.
Another factor behind today’s drop relates to talks between China and President Joe Biden. China is considering releasing some of the country’s oil reserves, and President Biden’s comments seem to suggest the United States will follow suit.
On top of that, President Biden has also called for a further investigation into oil prices. This includes allegations of price hikes at gas stations the president wants the Federal Trade Commission (FTC) to investigate, reports Barron.
Today’s news saw oil prices drop below $ 79 per barrel. This is much better than the $ 82.24 per barrel it was valued at earlier. We could also see prices continue to fall as OPEC + expects supply to exceed demand in early 2022.
This makes sense, as vacation travel is likely to keep oil prices from falling too low in 2021. Even with fears of Covid-19, people will continue to travel and this increase in demand could keep oil prices high. until December.
Investors looking for stock market news today will want to keep reading!
Investor place has all the latest stock hedges traders need to know today! This includes what happens with the actions of AquaBounty (NASDAQ:AQB), Greenland Technologies (NASDAQ:GTEC), and Mammoth Energy Services (NASDAQ:DEFENSE) Friday. You can read more about it at the following links!
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At the date of publication, William White did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.