Oil Prices Fall as Worsening Coronavirus Pandemic Threatens Demand Recovery - News Tags

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Monday, July 20, 2020

Oil Prices Fall as Worsening Coronavirus Pandemic Threatens Demand Recovery

NEWS

Oil prices dipped on Monday, weighed down by the prospect that a rise in the pace of coronavirus infections could derail a recovery in fuel demand.

Brent crude was down 10 cents, or 0.2%, at $43.04 a barrel by 0047 GMT, after dropping slightly last week. US oil was off by 6 cents, or 0.2%, at $40.53 a barrel, after gaining 4 cents last week.

"With the global daily COVID-19 case count and the most populous states in the US Sunbelt showing little success in flexing and containing the (epidemic) curve, concerns about the pace of recovery after COVID are limiting the oil limit, "said Stephen Innes, chief global markets strategist at Axicorp.

According to a Reuters count, more than 14 million people have been infected with the new coronavirus worldwide and nearly 602,000 have died.

While fuel demand rebounded from a 30% drop in April after countries around the world imposed strict blockades, usage is still below pre-pandemic levels. Retail demand for gasoline in the United States falls again as infections increase.

Japan's oil imports fell 14.7 percent in June from the same month a year earlier, official figures showed on Monday. The decline was not as steep as in May, when they fell 25% year-over-year.

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