Oil drops towards $66 as India demand concerns weigh | Reuters

Oil drops towards $66 as India demand concerns weigh | Reuters

Oil dropped towards $66 a barrel on Monday as concern about demand in India and higher OPEC+ supply offset optimism over rising demand in other major consumers such as China and the United States.

India on Monday reported more than 300,000 new coronavirus cases for a 12th straight day. The new wave of the virus has already led to a drop in fuel sales in the world’s third-largest consumer in April.

Brent crude fell 31 cents, or 0.5%, to $66.45 a barrel by 0815 GMT. U.S. West Texas Intermediate was down 19 cents, or 0.3%, at $63.39.

“There is no doubt that India plays a major role when we talk about oil demand, and the fact that the country is suffering from its worst coronavirus period is making investors nervous about oil prices,” said Avatrade analyst Naeem Aslam.