28.Sep .2020 13:10

Oil edges lower as rising virus cases cloud demand recovery outlook

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Oil prices dipped again on Monday as rising coronavirus cases upset hopes for a smooth recovery in fuel demand, with crude on track for its first monthly fall in many months after slipping last week.

Brent crude LCOc1 edged down 8 cents, or 0.2%, to $41.84 a barrel by 0003 GMT after dropping 2.9% last week. U.S. West Texas Intermediate CLc1 was at $40.12 a barrel, down 13 cents or 0.3%, following a 2.1% decline last week.

Brent is on track to fall for the first month in six while WTI is headed for its first monthly loss since April as renewed mobility curbs in various countries following more coronavirus cases cloud the outlook on fuel demand recovery.

“New COVID-19 case numbers are accelerating in major U.S. states, renewing fears of mobility restrictions challenging the ongoing oil demand recovery in the last quarter,” ANZ analysts said in a note.

More crude is also being exported from OPEC producers Iran and Libya despite efforts by the Organization of the Petroleum Exporting Countries and their allies to limit output.