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Falling oil prices due to increased COVID contamination outside the United States raised demand concerns

Oil futures lost points on Monday, with weakness in part due to concerns about the demand outlook as COVID-19 contamination outside the US continues to rise.

West Texas Intermediate crude for May delivery
+ 0.05%

+ 0.05%

down 10 cents, or 0.2%, to $ 63.03 / barrel on the New York Mercantile Exchange. June Brent crude oil
+ 0.01%

+ 0.01%
global standards, which were down 10 cents, or 0.1%, at $ 66.67 / barrel on ICE Futures Europe.

“We could certainly see some risks on the demand side: especially in emerging economies, which are responsible for a large portion of demand recovery, the number of COVID infections. New -19 has risen sharply at the end of the year, which could jeopardize the economic recovery. there, ”wrote Eugen Weinberg, commodity analyst at Commerzbank, writing in a note.

“This is probably why fuel demand in India, the world’s third largest crude importer, has fallen recently,” he said, noting data from home refiners The country showed that diesel oil demand in the first half of April fell 3% to 1.38. million barrels a day. Meanwhile, gasoline demand, which tends to track private consumption, fell 5% to 561,000 bpd, he noted.

India has replaced Brazil as a nation with the second highest number of cases at 15.1 million and fourth globally in death toll at 178,769. Brazil was third in cases with 13.9 million people and second with a death toll of 373,335 Mexicans, third in deaths with 212,339 people and 14th highest in cases of 2.3 million.

A weaker US dollar helped offset the pressure on crude oil prices, analysts said. ICE US Dollar Index
The monetary measure against the basket of the six major players, was down 0.5%.

Softer dollars can be a positive for dollar-denominated goods, making them cheaper for users of other currencies.



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