Oil Continues Losses Amid Renewed Fears of Coronavirus and a glut of supply

Oil prices continue their losses after losing 5% in the previous session, with governments re-imposing restrictions to contain the second wave of cases with the Coronavirus, and amid indications of a growing global supply glut.

By 0743 GMT, US West Texas Intermediate crude futures were down 8 cents, equivalent to 0.21%, to $ 37.31 a barrel, while Brent crude futures were down 12 cents, or 0.31%, at $ 39.

Amid the increasing number of Covid-19 cases in Europe, France imposed the necessity of homes from tomorrow, Friday, except for necessary activities, while Germany will close bars, restaurants and theaters from the second of November until the end of the month.

The Organization of the Petroleum Exporting Countries and its allies, known as the OPEC + group, intend to reduce production cuts in January 2021 from the current 7.7 million barrels per day to 5.7 million barrels per day.

On Wednesday, US Energy Information Administration data provided new evidence of a growing glut: US crude inventories increased by 4.3 million barrels in the week ending October 23, an increase more than expected.