Oil falls as rising COVID-19 cases fuel demand concerns

Oil prices fell on Wednesday on fears that rising coronavirus cases would prompt additional restrictions on social activity and weaken fuel demand.

Brent crude dropped 1.2%, or 48 cents, at $40.55 per barrel. U.S. West Texas Intermediate slid 0.8%, or 33 cents, at $38.96 per barrel.

The benchmarks fell over 3% on Tuesday as global COVID-19 deaths exceeded 1 million.

Libya’s Sarir oilfield reopened refineries after eastern forces discontinued an eight-month blockade on energy facilities. 

Weak demand for jet fuel also weighed heavily on the markets, with air travel stagnant due to coronavirus restrictions and general reluctance to travel.

Several refineries have been forced to shut down due to oversupply and low demand. Marathon Petroleum Corp is among the refiners that are starting to cut jobs amid the pandemic.