Oil slips 2% as resurgent Covid-19 makes investors worry about US demand
Oil prices fell about 2 per cent on Thursday as investors worried that renewed lockdowns to contain the spread of coronavirus in the United States would again sink fuel consumption.
Brent crude futures fell 85 cents, or 2 per cent, to $42.44 a barrel by 12:58 p.m. EDT (1658 GMT), after gaining 0.5 per cent on Wednesday. US West Texas Intermediate (WTI) crude futures fell $1.07, or 2.6 per cent, to $39.83 a barrel.
“As the US, Brazil and other countries continue to get hammered by Covid-19, demand is at stake,” said Louise Dickson, oil markets analyst at Rystad Energy.
The United States reported more than 60,000 new Covid-19 cases on Wednesday, the biggest increase reported by a country in a single day. Coronavirus cases have been on the rise in 42 of the 50 US states over the past two weeks, according to a Reuters analysis.
