Growing CoronaVirus Cases Put an End to Oil Rally

Oil prices retreated further from the 11-month high that they touched last week, ending a rally that began at the end of October due to production cuts and strong Chinese demand, in light of questions about market direction amid the growing number of coronavirus cases.

Brent crude was down 30 cents, equivalent to 0.5%, at $ 54.79 a barrel, after falling 2.3% on Friday. US crude fell 21 cents, or 0.4%, to $ 52.15, after falling 2.3% in the previous session.

The benchmark rose in recent weeks, supported by the start of vaccination against Covid-19 and a sudden reduction in crude production from Saudi Arabia, the largest exporter of it in the world. But the rise in new cases around the world raises doubts about the strength of demand.