Oil fell in London on concerns about the demand outlook and as the futures curve flipped into a structure indicating near-term weakness.
Brent futures slumped 3.4%. The nearest contract traded at a discount to the next one for the first time since January -- a pattern known as contango that indicates oversupply -- after a precipitous selloff in recent days. The dollar also climbed, making commodities priced in the currency more expensive. An advance in U.S. Treasuries also showed haven buying in broader markets as risk appetite wanes.
There are concerns over the demand outlook. Covid-19 cases are surging in India and threatening the economy’s recovery from a rare recession, while Germany will extend its curbs and impose an Easter lockdown. In the U.S., New York City’s mayor urged a pause on reopening.
- Brent for May settlement fell $2.22 to $62.40 a barrel as of 10:22 a.m. in London
- West Texas Intermediate for the same month lost $2.17 to $59.39
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