Oil prices dip as demand concerns counter U.S. stimulus | Reuters

Oil prices dip as demand concerns counter U.S. stimulus | Reuters

Oil prices fell on Monday as concerns about weakening fuel demand and the prospect of higher OPEC+ output outweighed optimism over a U.S. stimulus package.

Oil prices strengthened earlier in the day, with Brent rising above $52 a barrel, as Democrats aimed for larger $2,000 COVID-19 relief payments following U.S. President Donald Trump’s signing of a $2.3 trillion stimulus deal.

But a new variant of the virus in the United Kingdom has led to restrictions on movement being reimposed, hitting near-term demand and weighing on prices, while hospitalizations and infections surged in parts of Europe and Africa.

Brent crude settled at $50.86 a barrel, falling 43 cents, or 0.84%, after trading as high as $52.02 earlier in the session. U.S. West Texas Intermediate (WTI) crude settled at $47.62 a barrel, losing 61 cents, or 1.26%.