New York:-The fierce trade in the energy market is being driven largely by rising concern about how much crude the fragile world economy needs. US oil prices plunged 7% Tuesday to $36.76 a barrel. With Labor Day in the rearview mirror, the summer driving season in the United States is over. Many people don’t want to fly during the pandemic so the jet fuel demand remains extremely weak.
The economic laws of survival are being violated on both ends of the spectrum. And no one knows for sure how long it will take to recover. Demand fears are once again rippling through the oil patch. This was crude’s worst day and lowest closing price in nearly three months. At one point, oil was down as much as 9%. Brent crude, the world benchmark, fell below $40 a barrel for the first time since late June.