Crude oil price somewhat recovered on Wednesday afternoon to trade above the $40 mark.
Crude price has of late been falling on demand concerns as the pandemic does not seem to subside anytime in the near future.
There are concerns that if the pandemic is not controlled, then the global economy will see a further downside and an elongated recession.
Saudi Arabia’s recent decision to cut the official selling prices for its Arab light oil also has flared up the demand concerns.
The November futures contract of Brent on the Intercontinental Exchange touched a low of $39.37 per barrel on Wednesday. Currently, it’s trading at $40.31 per barrel, higher by 1.33 per cent from its previous close.
On Tuesday, Brent futures fell below the $40 per barrel mark for the first time since June, when the pandemic had plunged oil prices.
The WTI crude which also has been on the decline of late is currently in the green. The October contract of WTI on the NYMEX is currently trading around 37.28 per barrel, higher by 1.41 per cent.