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Oil fell due to strong increase in COVID-19 in India, Japan continued to worry about fuel demand according to Investment.com.

© Reuters.

By Gina Lee

Investment.com – Oil fell on Monday morning in Asia as oil demand is expected to decline as the number of COVID-19 infections continues to rise in India and Japan.

fell 0.31% to $ 65.22 at 11:02 PM ET (3:02 AM GMT) and switched to July 2021 contract on April 25th, down 0.19% to $ 62.02. However, both Brent and WTI futures remain above the $ 60 mark.

Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co., told Reuters: “Market sentiment is down due to fears that the number of COVID-19 cases is high in some countries, especially in India, will reduce fuel demand.

According to data from Johns Hopkins University, the world’s third largest oil importer reached $ 16.9 million as of April 26.

Japan, a country behind India in terms of the size of imports, has declared a state of emergency in Tokyo, Osaka and two other prefectures starting on Sunday. The country aims to limit the spread of the virus ahead of the Tokyo Olympic Games, scheduled to open in July 2021.

Fujitomi’s Saito also noted that investors are moving money from the oil market to the grain market recently “because the price of corn and other grains has a much higher volatility.”

In the last week, Chicago corn, wheat and soybeans rallied to multi-year highs on fears of damaging cold weather across crops across the US grain belt that supported prices. Investors also increasingly expect that more agricultural products will be used as biofuel.

On the supply side, the Organization of Petroleum Exporting Countries and Allies (OPEC +) will hold a technical committee meeting later in the day where major changes to current policy are unlikely. , according to Russian Deputy Prime Minister Alexander Novak last week.

In the US, energy companies cut the number of oil rigs operating for the first time since March 2021, as the number of rigs fell from one to 438 last week, according to the US energy services firm. Baker Hughes Co.

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