Oil poised for worst month since March with growing Covid-19 curbs

Oil headed for its biggest monthly drop since March as renewed lockdown measures to contain the coronavirus threatened to upend a shaky demand recovery.

Futures fell as much as 2.6% in New York on Friday, taking their cue from a broad market selloff with equities also sliding. At the same time, the US posted a record surge in daily coronavirus infections, while new restrictions in Europe could drive the region toward another recession.

“The risk appetite in the market is definitely lower,” said Rob Haworth, senior investment strategist at US Bank Wealth Management. “The return-in-demand story is taking a lot longer to play out than oil bulls had hoped.”