Oil dipped below $41 a barrel as the dollar gained and European stock markets slumped. Futures in New York dropped 1.4%, after rising on Wednesday. Equities slid in Europe after corporate earnings failed to re-ignite rallies and prospects wilted for new stimulus from Washington before the November election. Paris and London are also facing renewed clampdowns as virus cases rise.

U.S. crude futures have retreated when nearing $41 in recent weeks

Oil-market sentiment had improved this week amid some positive signals on consumption from Asia. But the likelihood of drastic curbs on movement being reintroduced in some of Europe’s largest cities has fueled demand fears. London is set to face harsher measures from Friday night. “Renewed concerns of new restrictions across Europe are weighing on sentiment and oil prices,” said Giovanni Staunovo, a commodity analyst at UBS Group AG. A stronger dollar is also weighing on prices, he said.

PRICES
  • West Texas Intermediate for November delivery fell 1.4% to $40.48 a barrel at 9:58 a.m. in London.
  • Brent for December settlement declined 1.3% to $42.74