Oil sinks amid continuing concerns over virus impact on fuel demand
Oil dropped in Asia on Monday, extending its losses from the previous week as the continuing restrictive measures to contain the latest coronavirus outbreaks raise concerns about fuel demand.
Brent oil futures plunged 1.94% to $69.33 by 10:32 PM ET (2:32 AM GMT), and WTI futures sank 2.05% to $66.88. Both futures stayed below the $70 mark.
In China, the world’s biggest oil importer, restrictions put up to curb the country’s latest COVID-19 outbreak have dampened the fuel demand outlook. The country has so far canceled flights, put out travel advisories in 46 cities, and limited public transportation services in 144 areas.
The recovery of the dollar, boosted by Friday’s better-than-expected US jobs report that fueled bets that the US Fed would begin asset tapering earlier, has also dealt a blow to oil.
In related news, the Organization of Petroleum Exporting Countries (OPEC) will release its monthly Oil Market Report on Thursday.