Oil slides as European lockdowns hurt outlook for demand recovery

NEW YORK (Reuters) – Oil prices eased further on Monday after a broad sell-off last week, as new European coronavirus lockdowns made a quick demand recovery look less likely. Brent crude was down 25 cents or 0.4% at $64.28 a barrel by 12:54 p.m. ET (1654 GMT) and U.S. oil for delivery in April fell 22 cents, or 0.4%, to $61.20 a barrel ahead of expiry. The more active U.S. crude futures for delivery in May fell 18 cents or 0.3% to $61.26 a barrel. Both contracts fell more than 6% last week after making steady gains for months on the back of output cuts and an expected demand recovery. “Oil (had) its worst week this year as concerns grow over a flaring up in COVID-19 cases across Europe,” Dutch bank ING said in a note. “This comes at a time when there are clear signs of weakness in the physical oil market.” Nearly a third of French people entered a month-long lockdown on Saturday while Germany plans to extend its lockdown into a fifth month, according to a draft proposal. British Prime Minister Boris Johnson warned on Monday that the third wave of COVID-19 infections sweeping across Europe could… continue reading

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Source: CTRM Center

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