Oil Prices Settle Lower on Coronavirus and Demand Recovery Concerns

Oil prices declined on Thursday due to rising concerns about the resurgence of the Coronavirus pandemic in many countries around the world.

The rise in new cases of the novel virus are leading to worries about the recovery of the global market demand.

A surprise bigger than expected decline in crude inventories in the United States, as shown by the U.S. Energy Information Administration’s (EIA) weekly report on Wednesday, did not provide the needed support, nor did concerns about supply disruptions.

Brent crude futures for April delivery decreased by 43 cents, or 0.8%, and closed at $55.10 per barrel.

Meanwhile, the West Texas Intermediate (WTI) crude futures for March delivery declined by 51 cents, or 1%, to finish at the level of $52.34 per barrel.