Crude Oil Futures Close Sharply Lower On Demand Concerns

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Crude oil prices fell sharply on Monday as worries about outlook for energy demand amid rising coronavirus cases in Europe.

Reports about possible resumption of oil production in Libya further raised concerns about oversupply in the market. Markets ignored a likely disruption Tropical Storm Beta could cause to oil output in the U.S. Gulf of Mexico.

According to reports, coroanvirus cases are on the rise in Europe, forcing fresh lockdown measures at several places, and raising uncertainty about the pace of economic recovery.

West Texas Intermediate Crude oil futures for October shed $1.80 or about 4.4% to settle at $39.31 a barrel.

Brent crude futures were down by about $2 or 4.6% at $41.15 a barrel.

The World Health Organization has warned that weekly Covid-19 infections in Europe now are higher than the continent’s first coronavirus peak in March.

British Prime Minister Boris Johnson said the country is experiencing the start of a second wave of Covid-19 and stricter lockdown measures will be introduced across the country.

Several other countries in Europe, including France, saw a sharp surge in new cases over the weekend.

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