Oil falls 4% on fuel demand concerns as Europe widens COVID-19 lockdowns | Reuters

Oil falls 4% on fuel demand concerns as Europe widens COVID-19 lockdowns | Reuters

Oil prices fell 4% on Monday on worries that widening coronavirus lockdowns in Europe would weaken fuel demand and amid concerns about turbulence over this week’s U.S. presidential election.

Brent crude futures LCOc1 for January dropped $1.49, or 3.9%, to $36.45 a barrel by 0745 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 fell $1.58, or 4.4%, to $34.21.

Brent fell as much as 5.8% and WTI as much as 6% in early trade, hitting their lowest levels since May.

Countries across Europe have reimposed lockdown measures to try to slow COVID-19 infection rates that have accelerated in the past month.

Global oil trading companies expect further demand destruction although estimates differ. Vitol sees winter demand at 96 million barrels per day (bpd) while Trafigura expects demand to fall to 92 million bpd or below.