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Oil prices have slipped, as governments of many nations renewed restrictions to limit the spread of a second wave of Covid-19 infections.
The price drop is also due to growing global oil supply glut.
Brent crude futures were down by $0.12 or 0.31% to $39.00a barrel while US West Texas Intermediate (WTI) fell by $0.21 touching $37.31, Reuters reported.
French President Emmanuel Macron ordered the country back into lockdown on Wednesday, as a large-scale second wave of infections threatened to overwhelm Europe before the winter.
Germany will shut bars, restaurants and theatres from 2 to 30 November under measures agreed between Merkel and heads of regional governments.
DailyFX strategist Margaret Yang was quoted by the news agency as stating: “The demand outlook is deteriorating as a second viral wave swept the US and most part of Europe.
“Stricter social distancing measures and more lockdowns may bring a larger-than-expected impact on global energy demand.”
Organization of the Petroleum Exporting Countries (OPEC), and its allies, including Russia, together known as OPEC+, is set to increase output by 2Mbpd in January next year after reducing output by a record amount earlier this year.
ANZ Research said in a note: “The pandemic’s resurgence is putting pressure on OPEC to delay its planned production hike in January.”
Data released by the US Energy Information Administration (EIA) showed a rise in the US crude stockpiles by 4.3 million barrels in the week to 23 October.
Meanwhile, Hurricane Zeta is estimated to weaken into a non-tropical gale-force low by the morning of 29 October in the US.