Oil Sinks More Than 5% On Fears Over Virus-hit Demand

Oil sinks more than 5% on fears over virus-hit demand

Oil prices slumped Wednesday, shedding more than five percent as traders fretted that the worsening coronavirus crisis would further slash the world's appetite for crude

London, (UrduPoint / Pakistan Point News - 28th Oct, 2020 ) :Oil prices slumped Wednesday, shedding more than five percent as traders fretted that the worsening coronavirus crisis would further slash the world's appetite for crude.

At about 1310 GMT, New York's main contract, West Texas Intermediate crude for delivery in December, was down 5.4 percent to $37.44 per barrel. London's Brent North Sea crude for the same month lost 4.6 percent at $39.32.

"Prices fell as the Covid-19 pandemic is holding strong, registering daily new infection count highs across several countries, causing governments to (reintroduce) strict lockdowns which in turn reduce demand for oil," said Bjornar Tonhaugen, head of oil markets at Rystad Energy.

"news from Europe also helped pull down prices, as both France and Germany are expected to announce new curbs to fight the second wave of Covid-19."Oil's latest losses mirrored a broader sell-off on global stock markets.

European leaders are being forced to revert to strict, economically damaging measures to control the spread of the virus.