Oil fell for a second day — dropping below $41 a barrel in New York — as the ongoing spread of coronavirus dampens the demand outlook. As well as the ongoing surge in European coronavirus cases, there are also growing numbers in the U.S., Japan and South Korea, all of which are major oil consumers. This prompted both the International Energy Agency and the Organization of Petroleum Exporting Countries to revise down their demand estimates in their monthly reports as renewed lockdowns hit fuel use.
“There is a clear divergence in the oil demand recovery between Asia and Europe,” said Kevin Solomon, an analyst at brokerage StoneX Group. “We can assume that tighter lockdowns will resume in the United States ultimately crimping oil demand.”
PRICES
West Texas Intermediate for December delivery lost 0.8% to $40.78 a barrel as of 10:55 a.m. in London
