Oil Falls Amid Concerns About The Impact of Increased Covid-19 Cases in India on Fuel Demand

Oil prices fell on Monday, on the back of fears that the escalation of Covid-19 infections in India will lower the demand for fuel in the world’s third-largest oil importer, and with investors shifting positions ahead of a planned increase in OPEC+ oil production from May.

Brent crude futures fell 38 cents, or 0.6%, to $65.73 a barrel, after rising 1.1% on Friday. U.S. West Texas Intermediate crude futures fell 31 cents, or 0.5% to $61.83 per barrel, after rising 1.2% on Friday.

On a weekly basis, the two benchmarks lost about 1% last week.

Indian Prime Minister Narendra Modi urged all citizens to receive vaccination and be careful, saying yesterday, Sunday, that the “storm” of cases is shaking the country, as the country recorded an unprecedented new number of daily cases of Covid-19.

In Japan, the fourth-largest buyer of oil in the world, the third state of emergency began in Tokyo, Osaka, and two other provinces yesterday, affecting nearly a quarter of the population as the country struggles to cope with the increase in infections.