Crude oil futures settled flat on Monday as rising coronavirus cases and tighter lockdown measures in several countries across the world raised concerns about outlook for energy demand.
Recent data showing a drop in crude stockpiles, and Saudi Arabia’s decision to cut its oil output by 1 million barrels per day in February and March continued to support oil prices.
West Texas Intermediate Crude oil futures for February settled at $52.25 a barrel, up 1 cent from previous close.
Brent crude futures were down by about $0.50 at $55.49 a barrel a little while ago.
With the identification of cases of the new strains of coronavirus – from the U.K. and South Africa – Germany’s Chancellor Angela Merkel warned locals “these next winter weeks will be the hardest phase of the pandemic”.
Elsewhere, mainland China saw its biggest daily increase in Covid-19 cases in more than five months, as new infections in Hebei province, which surrounds the capital Beijing, continued to rise.
Investors fear that travel bans and the closure of schools and workplaces in Europe coupled with new movement restrictions in China could weigh on fuel demand.
The material has been provided by InstaForex Company – www.instaforex.com