Global oil prices fall for the second week in a row

SARAJEVO, (Patria) - At global markets, oil prices fell by more than six percent last week, marking the second consecutive week under pressure, as investors fear a slow recovery in demand due to a new wave of 'lockdowns' in Europe.

The price of a barrel on the London market fell by 6.8 percent last week, to USD 64.53, while on the American market, a barrel fell by 6.4 percent, to USD 61.42, reports SEEbiz.

The sharp drop in prices is mainly due to traders' fears that demand for oil will not recover as quickly as they had hoped due to problems with controlling the coronavirus in Europe.

The vaccination process has slowed down in many European countries because they stopped administering the AstraZeneca vaccine last week due to a series of suspicious deaths that may have been caused by side effects after vaccination with that vaccine.

Although several European countries, including Germany and France, announced at the end of the week that they would continue with vaccinations after regulators assessed that the AstraZeneca vaccine was safe, vaccinations are hampered by the resistance of some citizens who do not want to be vaccinated with it, while other vaccines are arriving slower than expected.

In addition, some countries, including France, have announced new 'lockdowns' due to the third wave of the virus's spread, which represents a new blow to fuel consumption.

Oil prices were also pressured by a US government report, which showed that inventories rose in the previous week, indicating weak demand.

Thus, last week, oil prices fell from their highest levels since January of last year.

They are still supported by the limited production of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia.

This group has been coordinating production cuts of 7.2 million barrels per day for a long time to align it with reduced demand during the coronavirus pandemic.