Oil pares losses after plunging to four-month low on Covid-19 fears

Oil futures eased off session lows as stronger-than-expected US economic growth data and signs that Europe may get more stimulus offset some of the fallout from renewed lockdown restrictions.

Futures in New York pared losses after dropping below $35 a barrel to their lowest since June, while the global Brent benchmark also eased losses after sliding to a five-month low. The US economy saw a record yet temporary surge of growth in the third quarter and European Central Bank President Christine Lagarde signaled a new package of monetary stimulus in December.

“The GDP numbers suggest that there is an end to this situation, that all the news is not going to be negative and at least to some degree we’re seeing economic recovery,” said Michael Lynch, president of Strategic Energy & Economic Research. On the other hand, “all the Covid news seems to be that we’re shutting down, we’re increasing restrictions on behavior.”