The price of crude oil continues to fall in light of the growing concerns about the recovery of demand for black gold globally. In addition, tension among market participants is growing ahead of the publication of the official report of the changes in the level of raw materials in the US. The report from the US Department of Energy is expected Wednesday afternoon. In the meantime, analysts are making various guesses about what changes should be expected.

The price of futures contracts for Brent crude oil for delivery in November on the trading floor in London fell 1.07% or $0.44, which sent it to the level of $40.59 per barrel. Tuesday's trading ended in the red zone dropping 3.3% or $1.4. The futures for the month of November for this brand ends today.

The price of futures contracts for WTI light crude oil for delivery in November on the electronic trading platform in New York also sank 0.87% or $0.34, which forced it to fall to $38.95 per barrel. Tuesday's trading session was also devastating for this brand after the price sank significantly by 3.2% or $ 1.31.

On Tuesday, the press began to receive initial estimates from analysts on the level of oil reserves in the US. According to statistics from the American Petroleum Institute (API), the level of black gold reserves last week, which ended September 25, decreased by 831,000 barrels. At the same time, the level of gasoline reserves increased by 1.6 million barrels, while distillates went down by 3.4 million barrels. The level of raw material reserves at the Cushing terminal showed an increase of 1.6 million barrels.

Other experts surveyed by S&P Global Platts believe that the level of raw materials last week rose by about 1.9 million barrels. Gasoline, on the other hand, decreased by 1.3 million barrels, while distillates decreased by 1.7 million barrels.

However, market participants are in no hurry to react seriously to the preliminary forecasts. In the current situation of uncertainty, they are more hoping for official figures, which are not long to wait.

Nevertheless, a lot of factors continue to pressure the oil market. One that is known at present, is the growing concerns from investors on the coronavirus pandemic crisis. New York authorities released a statement on Tuesday stating that positive cases for COVID-19 over the past month have increased by 3%. This, of course, raises serious concerns about the possibility of a second wave of the pandemic. Moreover, such a result is likely to force the authorities to resort to restrictive quarantine measures again. And all this can happen before the onset of winter. The situation is even more aggravated in light of the coming presidential elections in the US.

Another factor is the increase in oil production in Libya. Moreover, Russia has also announced that it exceeded the production quotas that are assumed under the agreement with OPEC. All this shows that the contract to reduce oil production is not very carefully executed by countries. This makes us think about its future existence, especially since there are countries that have not paid off their debts since the summer.

In general, the crude oil market is not in the best condition right now. A huge number of negative fundamental factors, as well as a high share of uncertainty, pushes prices down, and forces investors to work with restraint.