The price of oil dropped considerably on Thursday. On a settlement of $ 63.82, a barrel of West Texas Intermediate became 3.4 percent cheaper. This ended four consecutive trading sessions in which the price of oil rose. Investors remain concerned about the coronavirus situation in India, while the United States ‘ largest oil pipeline company, Colonial Pipeline, is operational again after a cyber attack late last week.

“Despite shortages and a sharp rise in prices at the gas station, the impact should be short-lived, with long-term risks fading as the oil supply resumes,” said Schneider Electric analyst Robbie Fraser.

In a broader sense, the interruption is a reminder that cyber attacks, especially those targeting energy infrastructure, have increased in recent years and remain a significant challenge, Fraser said.

The analyst expects that the problems at Colonial Pipeline will be reflected in the demand for oil and the stock figures in the coming weeks.

Meanwhile, in India, the number of coronavirus infections remains high, according to OANDA’s analyst Sophie Griffiths, who pointed out that oil consumption fell by more than 9 percent on a monthly basis in april.

“This underlines the impact of the coronavirus crisis and associated mobility restrictions on oil demand in what is the world’s third largest importer,” Griffiths said.

Load More Related Articles
Load More In Business

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Credit Suisse helping Russian clients evade sanctions, US authorities suggest

The suspicions surrounding Credit Suisse’s alleged involvement in helping Russian cl…