As Europe curbs travel due to Covid, oil set to see worst month since March

Oil is poised for the biggest monthly slide since March on concern a resurgent pandemic in the US and Europe will keep people hunkered down, crimping demand for auto and aviation fuel.

Futures have tumbled 9.8 per cent this month in New York and they’re near the lowest since late May in London. Infections surged to a record in the US Midwest, while parts of Europe tightened restrictions to stem second waves. Meanwhile, the return of Libyan supplies added to concerns of a crude glut.

Road fuel sales in the UK slid for a fifth week to the lowest since July. Most European airlines trimmed regional capacity for November and December, while rising infections in the U.S. may thwart plans to increase capacity through year-end, according to Bloomberg Intelligence analysts George Ferguson and Francois Duflot.