Al-Ittihad – Oil drops on fuel demand concerns


Oil prices fell today, Monday, amid fears that a recovery in fuel demand could derail from the rise in the frequency of Coronavirus infections worldwide.

By 0653 GMT, Brent crude was down 36 cents, equivalent to 0.8 percent to $ 42.78 a barrel, after falling slightly last week, and US crude fell 34 cents, or 0.8 percent, to $ 40.25 a barrel, after increasing four cents last week.
More than 14.5 million people have been infected with the emerging coronavirus around the world and more than 604,000 have died of Covid-19 disease, caused by the virus, according to a toll collected by Reuters.
“The endless Corona Virus pandemic may force countries to reimpose comprehensive closures, which will slow economic growth and suppress energy demand,” said Avtar Sandu, commodities director at Philip Futures.
While fuel demand recovered from a 30 percent decline in April after countries around the world imposed strict public closures, its consumption remains below pre-pandemic levels. US retail gasoline demand is declining again as casualties grow.
Japan’s oil imports fell 14.7 percent in June, compared to a year ago, official figures showed today, but the decline came much less than the May drop of 25 percent year on year.


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