Oil drops as Covid-19 pandemic setbacks in India, Canada menace demand

Oil fell as the pandemic worsened in key regions, with Indian cases spiking and Canada’s most populous province declaring a state of emergency just as OPEC+ prepares to add supply over the coming months.

West Texas Intermediate sank as much as 0.9%, snapping a two-day gain. India, the world’s third-biggest oil importer, reported a record number of daily coronavirus cases above 126,000, with states facing a vaccine shortage. In Ontario, officials issued a stay-at-home advisory that’ll remain in place for four weeks to tackle a new, more dangerous wave. Elsewhere, the Tokyo government is weighing stricter curbs as a more contagious variant spreads.

Crude has traded in a narrow band around $60 since mid-March. Although signs of improving vaccine-aided consumption have supported prices, fresh Covid-19 outbreaks and renewed lockdowns have acted as a counterweight.