The Day at a Glance | September 8 2020

The Top

· Trump affirms he will end the United States economic dependence on China; he seems to be in favor of untying both economies.

· Aramco cuts Arab light crude oil prices that will be sold in Asia and the US during October, the larget cut since May. WTI falls to $37 dpb.

· Mexico`s 2021 Economic Package is expected to be presented today.

· Economic indicators: Europe`s 2Q20 GDP revised slightly upwards (14.7% vs 15% prev.).

Economic environment

International oil prices linked 5 consecutive sessions of declines and the WTI reached $37 dpb this morning, due to growing concerns of lower demand for energy resources, which could occur after the acceleration of COVID-19 cases in the world. Concerns for demand became evident this morning, when the main exporting company in the world, state-owned Saudi Aramco, officially cut its crude oil prices in Asia and the US for October. Its perspective entails a demand that will become stagnant towards the end of the year, especially if the recent acceleration in COVID-19 cases extends in Europe and forces stricter social distancing measures. In addition to this, there was an increase in the number of drilled wells in the United States in the last three weeks, according to Baker Hughes data.

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