SULAIMANI (ESTA) — Oil futures eased on Thursday, as the surge in coronavirus cases and tighter economic restrictions around the global stoked fears over slower fuel demand.
Brent crude futures LCOc1 dropped 19 cents, or 0.43%, to $44.15 a barrel by 0601 GMT, while U.S. Texas Intermediate crude CLc1 declined 28 cents, or 0.67%, to $41.54 a barrel.
“The spread of coronavirus infection and fresh restrictions in the United States and other parts of the world hit market sentiment as it would hamper fuel demand,” Reuters quoted chief analyst at Fujitomi Co Kazuhiko Saito as saying.
“Investors are also booking profits from the recent rally before the U.S. Thanksgiving holiday later this month,” he added.
The U.S. death toll from coronavirus surpassed a grim new milestone of 250,000 lives lost on Wednesday, as New York City’s public school system, the nation’s largest, called a halt to in-classroom instruction, citing a jump in COVID-19 infection rates.
Daily coronavirus cases in Tokyo and South Korea hit fresh highs, as New Delhi struggled with rising cases and Australia reported a highly contagious virus strain which forced a state-wide lockdown.
Worries about coronavirus-related economic damage overshadowed upbeat news from Pfizer and BioNTech that are seeking U.S. and European authorization for their COVID-19 vaccines next month.
“Weaker global equities amid growing worries over the surging pandemic also bolstered fears over slowing consumption and fuel demand,” said Satoru Yoshida, a commodity analyst with Rakuten Securities, according to Reuters.
