TOKYO (Reuters) – Oil costs fell on Monday, extending final week’s losses, as a leap in COVID-19 infections in the USA and Europe raised alarms over crude demand, whereas the prospect of elevated provide additionally harm sentiment.
Brent crude was down by 53 cents, or 1.3%, at $41.24 by 0052 GMT. U.S. West Texas Intermediate (WTI) dropped 53 cents, or 1.3%, to $39.32, having fallen greater than a greenback shortly after the beginning of buying and selling.
Brent fell 2.7% final week and WTI dropped 2.5%.
The US reported its highest quantity but of recent coronavirus infections in two days by Saturday, whereas in France new instances hit a report of greater than 50,000 on Sunday, underlining the severity of the outbreak.
On the provision aspect, Libya’s Nationwide Oil Corp on Friday ended its drive majeure on exports from two key ports and mentioned manufacturing would attain 1 million barrels per day (bpd) in 4 weeks, a faster ramp-up than many analysts had predicted.
OPEC+, a grouping of producers together with the Group of the Petroleum Exporting International locations (OPEC) and Russia, can also be set to extend output by 2 million bpd in January 2021 after chopping manufacturing by a report quantity earlier this 12 months.
“A resurgence in COVID-19 instances in Europe and North America has stopped the restoration in demand in its tracks,” ANZ Analysis mentioned in a notice.
“If market circumstances worsen, (OPEC+) could have no alternative however to delay the rise of quotas by a month or two at its assembly on 1 December,” ANZ mentioned.
Russian President Vladimir Putin indicated final week he might conform to extending OPEC+ oil manufacturing reductions.
In the USA, vitality firms elevated their rig depend by 5 to take the overall to 287 within the week to Oct. 23, essentially the most since Might, vitality providers agency Baker Hughes Co mentioned. The rig depend is an indicator of future provide.
Nonetheless, buyers elevated their web lengthy positions in U.S. crude futures and choices throughout the week by Oct. 20, the U.S. Commodity Futures Buying and selling Commision mentioned on Friday.
(Reporting by Aaron Sheldrick; enhancing by Richard Pullin)
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