Oil Continues to Post Losses

Global oil prices fell by more than 1%, to continue to suffer losses and heading towards the second monthly decline due to growing fears that the high number of Covid-19 cases in Europe and the United States may harm fuel consumption.

Brent crude fell for the third day, and fell 51 cents, or 1.4%, to $ 37.14 a barrel before the European markets opened, after touching a five-month low in the previous session. Brent’s December delivery contract expires today.

US West Texas Intermediate crude fell 48 cents, or 1.3%, to $ 35.69 a barrel, after falling to its lowest level since June on Thursday.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, a group known as OPEC +, are expected to raise production by 2 million barrels per day in January as part of their production deal.

But Saudi Arabia and Russia, two major producers, support maintaining the group’s production cuts of about 7.7 million barrels per day currently next year, with the threat of renewed isolation measures in Europe to slow demand specifically.

Coronavirus infections rose at a record one-day rate by half a million cases on Wednesday, prompting governments across Europe to impose restrictions on movement again to curb the virus.