SULAIMANI (ESTA) — Oil prices fell on Monday as a continued surge in coronavirus cases globally forced a series of renewed lockdowns, including strict new measures in Southern California in the United States.
Brent crude oil futures were down 24 cents, or 0.49%, at $49.02 a barrel by 0537 GMT, while West Texas Intermediate oil futures fell 24 cents, or 0.52%, to $46.02 a barrel.
“Crude pared earlier vaccine roll-out gains after Los Angeles county had another record high in coronavirus cases and South Korea raised their alert level,” said Edward Moya, senior market analyst at OANDA, according to Reuters.
“COVID restrictive measures and lockdowns across the globe seem poised to keep crude prices heavy in the short term.”
The new restrictions in California call for bars, hair and nail salons and tattoo shops to close.
The southern German region of Bavaria announced on Sunday it would impose a tougher lockdown from Wednesday until January 5.
South Korean authorities heightened social distancing rules for the capital Seoul and surrounding areas that would last until at least the end of the month.
Iran, meanwhile, has instructed its oil ministry to prepare installations for production and sale of crude oil at full capacity within three months, state media said on Sunday.
“Adding to the pressure on oil prices is the potential Iranian increase to production in three months. Iran is optimistic the U.S. will ease restrictions if they return back to the 2015 nuclear deal,” Moya added.
Still, rapid demand recovery in China and developments in COVID-19 vaccines capped price losses.
(Esta Media Network/Reuters)
