Oil edges lower as Covid-19 restrictions in Asia fuel demand concerns

Oil prices edged lower on Monday as the recovery of a major US pipeline network eased concerns over supply and a new wave of Covid-19 restrictions in Asia fuelled fears of lower demand.

Gasoline shortages that have plagued the US East Coast slowly eased on Sunday, with 1,000 more stations receiving supplies as Colonial Pipeline’s 5,500-mile (8,900-km) system recovered from a crippling cyberattack.

Brent crude oil futures were down 8 cents, or 0.1 per cent, at $68.63 a barrel as of 6:06 am, and West Texas Intermediate (WTI) crude was down 7 cents, or 0.1 per cent, at $65.30.

The two contracts jumped nearly 2.5 per cent on Friday and managed to book a small gain last week, marking a third consecutive weekly increase.