TOKYO (JAPAN) – Rising concerns about spiking coronavirus cases around the world scuttling the chances of fuel demand recovering caused oil prices to fall on Monday.
Brent crude slipped by 25 cents, or 0.6%, at $42.89 a barrel by 0353 GMT. US oil dipped by 22 cents, or 0.5%, at $40.37 a barrel. Last week, it had gained four cents.
“The risks of a second COVID-19 torpedo to world growth grow increasingly likely by the day,” said Jeffrey Halley, senior market analyst at OANDA.
Although the demand for oil recovered from a 30% drop in April when countries imposed lockdowns, consumption is still remains below pre-pandemic levels. Surge in cases has caused US retail gasoline demand to dip.
In June Japan’s oil imports dropped by 14.7 percent compared to the same period last year, according to official data. It was not as pronounced as in May when imports slumped 25%, year on year.
For the fourth consecutive month, exports from Japan dropped as the coronavirus pandemic slammed global demand.
According to data released on Friday, the US drillers slashed the number of oil and natural gas rigs operating to a record low for the 11th week.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field