Crude oil prices mixed as lockdowns ease, US-China tensions threaten demand

Oil prices were mixed on Monday as countries started to ease coronavirus lockdowns, though a fresh spat between the United States and China over the origin of the virus weighed on prices.

Worldwide fuel demand fell by an estimated 30 per cent in April, and weak consumption is expected to overhang the crude market for months, even as major world oil-producing nations and companies quickly reduce output. However, analysts have said that swift action by those parties could help reduce the supply glut more quickly.

“The bigger picture, while not great, is looking more constructive as countries around the world are reopening and that’s going to increase oil demand at the same time OPEC-plus is cutting production,” said Andy Lipow of Lipow Oil Associates in Houston.