Oil hits 7-week lows on supply release expectations, Europe Covid surge

Crude oil fell to seven-week lows on Monday, extending declines after the previous session’s slide, on concerns about excess supply after Japan said it was weighing releasing oil reserves and over demand from a worsening Covid-19 situation in Europe.

Brent lost 57 cents, or 0.72 per cent, to $78.32 a barrel as of 0206 GMT and US West Texas Intermediate (WTI) crude futures were down 39 cents, or 0.51 per cent, at $75.55 a barrel.

WTI and Brent prices hit their lowest since October 1 earlier in the session. They slumped around 3 per cent on Friday.

Japanese Prime Minister Fumio Kishida signalled on Saturday he was ready to help counter soaring oil prices following a request from the United States to release oil from its emergency stockpile.