Oil Falling, Covid-19 Escalating

Oil prices retreated on Monday on tensions over a recovery in fuel demand, after Covid-19 cases rose worldwide. Brent crude fell 25 cents, or 0.6%, to $ 42.89 a barrel, while US crude oil (WTI) fell 0.5%, or 22 cents, to $ 40.37 a barrel.

More than 14.5M people were infected with Covid-19 worldwide, with more than 604,000 deaths, according to Reuters statistics.

Fuel demand rebounded by 30% in April after strict lockdowns and demand remains below pre-epidemic levels. Retail demand for gasoline is declining in the United States with increasing numbers of cases.

Official figures showed on Monday that Japan’s oil imports fell 14.7% in June compared to the same month last year.

It is worth noting that the market’s reaction was muted on the reports that the ruler of the Kingdom of Saudi Arabia, King Salman bin Abdulaziz, had entered the hospital suffering from cholecystitis. Saudi Arabia is the world’s largest oil exporter and is making efforts to cut production to combat the spread of Covid-19.