Oil drops as spike in coronavirus case stirs demand worries

Oil extended losses from last week on Monday, dropping almost 2% as a spike in U.S. and European coronavirus cases raised worries over fuel demand, while higher supply hit sentiment.

Brent crude fell 1.7%, or 70 cents, at $41.07 per barrel. U.S. West Texas Intermediate slid 1.7%, or 69 cents, at $39.16 per barrel. In the previous week, Brent dropped 2.7% and WTI 2.5%.

The United States posted its highest new coronavirus infections in two days through Saturday. France surpassed a record 50,000 cases on Sunday, hinting at an escalation of the outbreak.

Meanwhile, Libya’s National Oil Corp lifted its force majeure on two key ports. Output is expected to rise to 1 million bpd in four weeks, higher than analysts’ expectations.

OPEC+ is set to raise production by 2 million bpd in January 2021 following record cuts this year.

U.S. energy companies added 5 more rigs to total 287 in the week ended Oct. 23, hinting at additional supply in the future.