Oil prices fell for the second straight session on Monday, with new Coronavirus lockdown raising fresh concerns about global fuel demand. Brent crude for March delivery fell 8 cents, or 0.1 percent, to $55.38 a barrel, while US West Texas Intermediate crude fell 1 cent to $52.26 a barrel, according to Reuters. “Signs of low demand are dominating the market,” said ANZ analysts, it continues to point to lockdowns in Hong Kong, China and possibly France, saying there has been an increase in coronavirus cases.
The current global lockdown situation is reducing business activity and fuel consumption. New cases of the coronavirus surfaced in China on Monday, boosting the prospects for lower demand in the world’s largest energy-consuming country, a major pillar of global oil consumption. Prices came under further pressure last Friday when data from the US Energy Information Administration showed that US crude reached 4.4 million barrels on January 15, instead of a surprise 1.2 million barrels.
Earlier: Fuel Prices to Increase from Jan 1
Baker Hughes data shows that the number of oil and natural gas supplies from US energy companies has increased for the ninth consecutive week, but Baker Hughes data shows that it is now higher than last year also 52% less. According to Stephen Schork, editor of the Schork Report, editor of the Oil Market Newsletter More is expected to come in the later weeks. It should be noted that some support for oil prices in the global market has come in recent weeks due to the reduction in surplus production of the world’s top exporter, Saudi Arabia. But investors are eyeing a resumption of talks between the United States and Iran on a nuclear deal that would lift Washington’s embargo on oil exports to Iran and boost supplies.
Web Desk is the news author at Research Snipers which mainly covers Pak News, Technology News, Business News, and Entertainment served by Research Snipers Staff and editors.