Prices of oil and other commodities will come under renewed pressure on Monday on fears that Friday night’s deadly attacks on Paris will further slow the global economy. Oil is already trading near its six-year lows and healthy demand has been a major factor preventing the prices from sliding any lower amid a worsening global oil glut due to abundant supplies.
“Currently sentiment is really bearish, so this could be seen as hurting demand, so oil prices could fall further,” said Amrita Sen from Energy Aspects. Sen added that a short-term sell-off could, however, be followed in the mid-term by a rally if people think events in Paris could lead to a serious escalation of tensions in the Middle East.
Analysts from Eurasia Group said the attacks will likely undermine the French government’s ability to focus attention on the improving economy.