Oil prices fell on Monday as concern over a persistent glut and economic gloom caused by coronavirus pandemic combined to cancel out support from supply cuts at some of the world’s top producers.
Brent crude futures were down 29 cents or 0.9 percent at $30.68 a barrel by 0431 GMT, while U.S. West Texas Intermediate crude futures fell 17 cents, or 0.7 percent to $24.57 a barrel. Both benchmarks have notched up gains over the past two weeks as countries have eased business and social lockdowns imposed to cope with the coronavirus and fuel demand has rebounded modestly.
Oil production worldwide is also declining. But possible signs of a second wave of coronavirus infections in northeast China and South Korea worried investors, even as more countries started to pivot towards easing pandemic restrictions in moves that could support oil demand.
Goldman Sachs analysts said there was still concern that demand will stay weak in 2021 with worries about the second wave of COVID-19 cases and only a modest increase in personal or corporate travel.