Oil slips towards $66 as India offsets demand hopes elsewhere | Reuters

Oil slips towards $66 as India offsets demand hopes elsewhere | Reuters

Oil dropped towards $66 a barrel on Monday as concern about demand in India and higher OPEC+ supply offset optimism over a strong demand rebound in countries including the United States and China.

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 35 cents, or 0.5%, to $66.41 a barrel by 1000 GMT. U.S. West Texas Intermediate dropped 27 cents, or 0.4%, to $63.31.

“There is no doubt that India plays a major role when we talk about oil demand,” said Avatrade analyst Naeem Aslam. “As for the rest of the world, such as China, Europe, the Middle East and the U.S., the coronavirus vaccination process continues to roll on and we see tremendous progress.”