Oil prices fell on Monday as new coronavirus infections hit the United States and China, raising worries that renewed lockdowns could hamper economic recovery and dent fuel demand.
US West Texas Intermediate crude fell 35 cents, or 1 per cent, to $35.91 a barrel. Brent crude rose 6 cents to $38.61 a barrel by 11:27 a.m. EDT (1506 GMT).
More than 25,000 new were reported on Saturday alone in the United States, where more than 2 million people have been infected, about a quarter of the cases worldwide.
After nearly two months with no new infections, Beijing officials reported 79 coronavirus cases over the past four days, sparking
“As a trader you can’t see the number of new infections rising in key markets and ignore it,” said Bjornar Tonhaugen, Rystad Energy’s head of oil markets. “The risk calculator now shows that we are much closer to a second boom of the epidemic.”
Economic data from China suggested the world’s second-biggest economy was struggling to get back on track. Industrial output in May expanded 4.4 per cent from a year earlier, less than expected.
Germany’s economic output will also fall further in the second quarter, its economy ministry said on Monday.
Still, China’s crude oil throughput in May rose 8.2 per cent from a year earlier as independent refiners increased processing.
