Oil Falls Amid Rising COVID-19 Cases

Oil Falls Amid Rising COVID-19 Cases

Oil Falls Amid Rising COVID-19 Cases

SINGAPORE (Reuters) – Oil prices fell on Monday amid rising coronavirus cases, undermining hopes for a smooth recovery in fuel demand.

Futures for Brent crude oil fell 0.86% to $ 41.56 a barrel by 09:57 Moscow time, for WTI – dropped 0.97% to $ 39.86 a barrel.

“The number of new cases of COVID-19 infection is on the rise in major US states, rekindling fears about imposing travel restrictions that challenge the continued recovery in oil demand in the last quarter,” analysts at ANZ wrote.

US energy companies increased the number of oil rigs for the second week in a row as some businesses returned to drilling amid stabilizing oil prices.

Speculators have increased their net long positions in US light oil WTI for the week ending September 22, data from the Commodity Futures Trading Commission (CFTC) showed Friday.

Clashes between Armenian and Azerbaijani forces over Nagorno-Karabakh resumed on Monday morning with the deployment of heavy artillery from both sides, the defense ministries of Armenia and Azerbaijan reported. This has raised concerns about stability in the South Caucasus, the corridor that supplies oil and gas to world markets.

(Florence Tan. Translated by Olga Beskrovnova. Editor Anna Kozlova)

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