Oil prices fell at the beginning of trading this week while the Asian market witnessed downward pressure due to fears of a second wave of the Coronavirus. In China, authorities announced a new type of the virus has been identified in Beijing and announced th locking down of ten communities in Haidian District. In the United States, over a dozen states have seen a rising number of new cases as businesses opened up following weeks of lockdown.
Brent for August settlement fell 3.37% to $37.43 per barrel at 2:46 am Eastern Time while West Texas Intermediate fell by 4.70% to $34.55 a barrel.
BP PLC said on Monday it will write off between $13 billion and $17.5 billion from the value of its assets in the second quarter after it reduced its price assumptions. The company last week announced will cut 10,000 jobs by the end of 2020.
China’s National Bureau of Statistics today announced industrial production rose 4.4% in May compared to a growth of 3.9% in April. Private holding enterprises rose 7.1% while manufacturing increased by 5.2%.
Saudi Aramco has also announced it has finalized its deal to buy a 70% stake in Saudi Basic Industries Corp (SABIC) in a transaction valued at $69.1 billion. The deal was finalized through four different transactions according to Al-Arabiya. About 36% of the sum was paid in cash while the rest came from a seller loan.