A new wave of lockdowns wiped out oil prices

Oil prices fell today due to lower expectations for crude oil demand as Germany, the largest economy in Europe, said it would reimpose strict containment measures and struggle with other European Union countries to introduce vaccines.

European stock markets were only slightly lower after the sharp losses in Asia.

In currency markets, the Turkish lira stabilized a day after its decline in response to news of the dismissal of President Recep Tayyip Erdogan, the head of the country’s market-friendly central bank, raising concerns about another round of financial turmoil.

Chancellor Angela Merkel and regional leaders agreed today that Germany will simultaneously enter a strict five-day lockdown during Easter amid rising virus rates.

French President Emmanuel Macron said that neighboring France should vaccinate “morning, noon and evening”, while dealing with criticism that the vaccination campaign against the Covid-19 virus has been too slow.

France faces a third wave of infections but lags behind many Western countries in terms of the number of people vaccinated.

Fouad Razzaq Zadeh, an analyst at ThinkMarkets, noted that events in Europe “are hurting the demand forecast for crude oil.”

“If everything is equal, then this means that growth will be slower to recover and inflationary pressures are likely to be weaker than previously thought.”

Across the Atlantic, the focus is on the first joint testimony of Congress by Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen, who were due to answer today questions about their political response to the pandemic.

This comes at a time when the markets are shaken by the sharp rise in US Treasury yields in recent weeks, fueled by bets that the expected strong rebound in economic activity this year will lead to an increase in inflation and force the bank to raise interest rates before 2024, as it did. Shown.

The couple has repeatedly said that they do not see a continuous spike in inflation and will maintain extremely loose monetary policies – including record low rates – until they bring unemployment under control, and price rises above 2% for an extended period.

Also on the radar this week is the US Treasury’s seven-year bond auction, which will be watched closely after last month’s weak sell-off led to a sharp sell-off in bonds that spiked yields – and yields are heading in the opposite direction to prices – and sparked panic in Global Market.

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