Oil falls as virus infections rise, eyes on European Union recovery plan

LONDON (Reuters) – Oil prices fell on Monday as coronavirus cases increased in many countries across the globe, but investors remained cautiously optimistic about ongoing talks over a European Union-wide recovery fund to revive economies affected by the pandemic.

Brent crude was down 19 cents, or 0.4%, at $42.95 a barrel by 0845 GMT, and U.S. oil slipped 19 cents, or 0.5%, to $40.40 a barrel.

“As things stand, prices are not likely to produce any sizeable gains very soon, until a signal that the pandemic slows down. And even though in Europe the virus has been cornered, the Americas and some Asian states have still a long way to go,” said Rystad Energy’s head of oil markets Bjornar Tonhaugen.