TOKYO: Oil prices fell for a second day on Wednesday as rising coronavirus cases prompted concerns about further restrictions on global economic activity that could curb fuel demand.
Brent crude for November delivery dropped 63 cents, or 1.56 per cent, to $40.40 per barrel by 1005 GMT. West Texas Intermediate fell 50 cents, or 1.3 per cent, to $38.79.
The November Brent contract expires today, to be replaced by the December contract, which was down around 1.4 per cent at $41.00.
The benchmarks fell more than 3 per cent on Tuesday as global COVID-19 cases passed 1 million, having doubled in three months.
“The increasing number of COVID-19 cases continues to raise alarm bells on energy demand,” said Avtar Sandu, senior commodities manager at Phillip Futures.
“Concerns about stagnating demand and the return of Libyan exports continue to put pressure on oil prices,” said Norbert Rucker from Julius Baer.
ING Economics also pointed out in a note: “Whilst demand is an issue for the market, the supply side of the equation is not helping either.”
Libya’s Sarir oilfield, which was producing more than 300,000 barrels per day (bpd) last year, restarted output after an eight-month blockade.
Chief Executive Officers of the world’s biggest trading companies are forecasting a weak recovery for oil demand and little movement in prices in the coming months and potentially years. — Reuters
Oman Observer is now on the WhatsApp channel. Click here
