Oil prices fell on Monday on worries that widening coronavirus lockdowns in Europe would weaken fuel demand while concerns remain over potential turbulence resulting from this week’s U.S. presidential election.
Brent crude LCOc1 was down 13 cents, or 0.3%, at $37.81 a barrel by 1443 GMT. U.S. West Texas Intermediate CLc1 fell 16 cents, or 0.4%, to $35.63.
Both contracts fell more than $2 earlier in the session.
Countries across Europe have reimposed lockdown measures to try to slow COVID-19 infection rates that have accelerated over the past month.
“The number of lockdowns – and the oil demand the countries that imposed them account for – will lead to some demand destruction, depressing balances and putting further strain on the already fragile market,” said Rystad Energy analyst Paola Rodriguez-Masiu.
Global oil trading companies expect further demand destruction, though estimates differ. Vitol sees winter demand at 96 million barrels per day (bpd) while Trafigura expects demand to drop to 92 million bpd or lower.
