Oil prices drop towards $70 as Covid pandemic concerns weigh

Oil prices declined towards $70 a barrel on Thursday as more countries imposed fresh movement restrictions to counter a surge in COVID-19 cases, though Middle East tensions offered support.

Japan is poised to expand emergency restrictions to more prefectures while China, the world’s second-largest oil consumer, has imposed restrictions in some cities and cancelled flights, threatening fuel demand.

Brent crude oil futures dropped by 38 cents, or 0.54%, to $70 a barrel by 0837 GMT after dipping below that threshold for the first time since July 21.

U.S. West Texas Intermediate (WTI) crude futures fell by 34 cents, or 0.5%, to $67.81. Both benchmarks fell by more than $2 a barrel on Wednesday.