- Advertisement -

Oil prices fall as India’s battle with Covid-19 weighs on demand

Brent crude futures fell to $64.78

The price of oil fell on Monday as Covid-19 cases surged India, one of the world’s biggest oil importers.

Ahead of a planned increase in OPEC+ oil output in May, investors have now adjusted their positions.

Brent crude futures fell to $64.78, down 2.01%, by 0900 GMT on Friday, while West Texas intermediate (WTI) crude futures was down by 0.92% to $61.51 a barrel.

Both benchmarks fell by around 1% the previous week.

“Market sentiment was dented on worries that surging number of COVID-19 cases in some countries, especially in India, will slash fuel demand,” Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co.

- Advertisement -

India’s prime minister Narendra Modi encouraged citizens to get vaccinated and to be cautious as the nation set a new record for the most Covid-19 infections in a day.

The Organization of the Petroleum Exporting Countries and allies led by Russia (OPEC+), surprised the market at its April 1 meeting by agreeing to ease production curbs by 350,000 barrels per day (bpd) in May, another 350,000 bpd in June and a further 400,000 bpd or so in July. 

The producer group will hold a largely technical meeting this week, with major changes to policy unlikely, Russian Deputy Prime Minister and OPEC+ sources said last week.

Latest News

More Articles Like This