Thursday 29 October 2020

Oil extends losses on renewed coronavirus lockdowns, over-supply worries | Reuters

Oil extends losses on renewed coronavirus lockdowns, over-supply worries | Reuters

Oil prices fell on Thursday, extending a 5% slump in the previous session, as governments’ renewed restrictions to curb a second wave of coronavirus infections and signs of a growing global oil supply glut send prices tumbling.

U.S. West Texas Intermediate (WTI) crude futures edged down 8 cents, or 0.21%, to $37.31 a barrel by 0743 GMT, while Brent crude futures were down 12 cents, or 0.31%, at $39.00.

Amid surging COVID-19 cases in Europe, France will require people to stay home for all but essential activities as of Friday, while Germany will shut bars, restaurants and theatres from Nov. 2 through the end of the month.

“The demand outlook is deteriorating as a second viral wave swept the U.S. and most part of the Europe. Stricter social distancing measures and more lockdowns may bring a larger-than-expected impact on global energy demand,” said Margaret Yang, a strategist at DailyFX.

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