Oil falls 5% as economic outlook dims with rising virus cases | Reuters

Oil falls 5% as economic outlook dims with rising virus cases | Reuters:

Oil prices plunged about 5% on Monday, weakening as rising coronavirus cases stoked worries about global demand, and a potential return of Libyan production bolstered oversupply fears.

Crude oil followed other equities and commodities markets in turning risk-averse on Monday as rising COVID-19 infection rates in Europe and other countries prompted renewed lockdown measures, casting doubt over economic recovery.

“We’re seeing more depressing news on jet fuel demand,” said Gary Cunningham, director of market research at Tradition Energy in Stamford, Connecticut. “We’re looking for a much softer market. The economic picture doesn’t look as rosy as it did before.”

Brent crude LCOc1 settled down $1.71, or 3.96% at $41.44 a barrel. U.S. crude CLc1 fell $1.80, or 4.38% to $39.31 a barrel. Both contracts were set for their biggest daily drops in two weeks.

Prices pulled back amid mounting concerns that an increase in coronavirus cases could cut demand.