Oil falls 2% on U.S.-China tensions, rising virus cases - Reuters

Oil falls 2% on U.S.-China tensions, rising virus cases - Reuters:

Oil prices dropped nearly 2% on Monday despite a weaker U.S. dollar, as rising coronavirus cases and tensions between the United States and China clouded the outlook for oil demand’s recovery.

Brent crude LCOc1 lost 81 cents, or 1.9%, to $42.53 a barrel by 11:13 a.m. EDT, while U.S. West Texas Intermediate (WTI) crude CLc1 fell 65 cents, or 1.6%, to $40.64 a barrel.

Following the closures of consulates in Houston and Chendu, investors worried about relations between China and the United States and have retreated to safe havens, such as gold and bonds.

“In lack of larger fundamental news, oil prices are following the overall macro trends, behaving as a ‘risky asset’ and being traded lower when safe-haven assets strengthen,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.