Oil Falls as Recovery Hopes Dwindle Due to Isolation Measures in Europe

Oil prices fell again, with renewed fears that general isolation measures in Europe could slow an expected recovery in demand for fuel products.

Brent fell 34 cents, equivalent to 0.5%, to $64.19 a barrel

In Asian trading, US crude lost 21 cents, equivalent to 0.3%, to $61.21 a barrel. The two contracts fell more than 6% last week.

Germany intends to extend isolation measures to contain Covid-19 infections for the fifth month in a row, according to a proposed draft, after new infections have exceeded levels that the authorities say will put a lot of pressure on hospitals.

Meanwhile, US energy companies began taking advantage of the previous rise in oil prices as a result of optimism about the return of demand and added the largest number of rigs to extract oil since January in the week ending on Friday.

Baker Hughes Energy Services said in its closely watched report on Friday that the number of oil and gas rigs, a preliminary indicator of future production, rose by nine rigs to 411 last week, the highest since April.

The number of rigs has increased over the past seven months and about 70% more than its lowest level in August at 244 rigs.