Oil drops 3% on weak demand outlook and higher OPEC supplies | Reuters

Oil drops 3% on weak demand outlook and higher OPEC supplies | Reuters:

Oil prices fell 3% on Thursday as rising coronavirus cases around the world dampened the demand outlook, and a rise in OPEC output last month also pressured prices.

Brent crude LCOc1 futures fell $1.37, or 3.2%, to settle at $40.93 a barrel after dropping to a low of $39.92. U.S. West Texas Intermediate (WTI) crude CLc1 futures ended down $1.50, or 3.7%, at $38.72 after sliding more than 6% to a session low of $37.61.

“It has become evident that the virus has not been contained. Infection rates are going up, the global death toll has surpassed the 1 million mark and the world is becoming a gloomy place once again,” said PVM Oil analyst Tamas Varga. 

In the United States alone the pandemic has infected more than 7.2 million and killed more than 206,000.