Oil prices slip 3% as Europe widens Covid-19 lockdowns
Oil prices fell 4% on Monday on worries that widening coronavirus lockdowns in Europe would weaken fuel demand and amid concerns about turbulence over this week’s US presidential election.
Brent crude futures for January dropped $1.49, or 3.9%, to $36.45 a barrel by 0745 GMT, while US West Texas Intermediate (WTI) futures fell $1.58, or 4.4%, to $34.21.
Brent fell as much as 5.8% and WTI as much as 6% in early trade, hitting their lowest levels since May.
Countries across Europe have reimposed lockdown measures to try to slow Covid-19 infection rates that have accelerated in the past month.
Global oil trading companies expect further demand destruction although estimates differ. Vitol sees winter demand at 96 million barrels per day (bpd) while Trafigura expects demand to fall to 92 million bpd or below.
