Oil collapses amid lockdown in Austria

On Friday, November 19, oil trading ended in decline. The price of Brent crude oil fell 3.34% to $ 78.36. The fall from an intraday high of $ 82.02 was 5.02%.

Market participants reacted by selling oil futures for lockdowns in Europe due to fears of a slowdown in demand growth. The bearish sentiment was also fueled by reports that the US and China are preparing to start selling raw materials from strategic reserves.

The Austrian government on Friday announced a lockdown in the country, which could last twenty days. Oil prices will continue to fall if other European countries follow Austria's lead. German Health Minister Jens Spahn also did not rule out the possibility of introducing a nationwide lockdown.

On Monday, November 22, in Asian trading, the price recovered 0.57% to $ 78.80. The price is correcting after Friday's fall. If buyers are unable to raise the price above $ 80 within two days, then we should expect a drop to $ 74 by the beginning of December.