Oil is Down by More Than 3% on Concerns About Fuel Demand

Oil prices fell more than 3% Monday, November 2, due to fears that widening the scope of anti-Corona virus closures in Europe may weaken fuel demand, while dealers brace for unrest in conjunction with the US presidential elections this week.

By 04:10 GMT, Brent crude futures for January delivery were down $ 1.34, equivalent to 3.5%, to $ 36.60 a barrel, while US West Texas Intermediate crude futures fell $ 1.41, or 3.9%, to $ 34.38.

Brent fell 5.8% and West Texas as much as 6% in early trade, to their lowest levels since May. Countries across Europe are re-imposing sweeping lockdowns in an attempt to curb the COVID-19 outbreak, which has accelerated in the last month.

Oil trimmed its losses after Japanese export orders grew for the first time in two years and Chinese industrial activity rose to its highest levels in nearly ten years in October.

The manufacturing surveys for the Eurozone and the US are expected later in the day.