Oil Prices Fall As Demand Worries Linger
Oil prices fell on Monday as rising coronavirus cases coupled with the reimposition of mobility curbs in some countries clouded the outlook for a recovery in fuel demand.
Benchmark Brent crude dropped half a percent to $42.18 a barrel, after having fallen 2.9 percent last week. U.S. West Texas Intermediate crude futures were down 0.7 percent at $39.98, after having declined 2.1 percent last week.
Amid signs of fresh virus spikes, Europe is seeing a reintroduction of strong measures in big cities like Paris, London and Madrid.
The United States has been the worst-hit country in the world with the number of coronavirus cases reaching 7 million over the weekend.
According to a CNN analysis of data from Johns Hopkins University, the number of new coronavirus cases has increased by at least 10 percent or more compared to the week before in 21 states as of Sunday. Health experts have warned of a potential coronavirus surge in the fall and winter.
The World Health Organization warned Friday that coronavirus deaths could more than double to two million if the world failed to take any collective action.
Market participants are gearing up for heavy new data this week, including China purchasing manager indexes due Wednesday and the September U.S. employment report due on Friday, which will be the last before the November election. The EIA crude oil inventory report comes out Wednesday.