Oil Prices Fell Due to Renewed Coronavirus Fears

Brent crude prices fell, a dollar per barrel, on Monday, January 11, as they were affected by renewed concerns about global demand for fuel in light of strict lockdown measures aimed at combating the spread of the Coronavirus in Europe and new restrictions on movement in China, the second-largest consumer of oil in the world, where cases jumped.

Brent crude futures fell 78 cents, or 1.4%, to $55.21 a barrel, after a dollar fell to a session low of $54.99 earlier. Brent rose in the past four sessions.

US West Texas Intermediate crude fell 52 cents, or 1%, to $51.72 a barrel. West Texas crude rose to its highest level in nearly a year on Friday.

The Chinese authorities said today that the Chinese mainland recorded the largest daily increase in Covid-19 cases in more than five months, as infections increased in Hebei, near the capital, Beijing.

Shijiazhuang, the provincial capital and the epicentre of the new outbreak, is under lockdown measures, with a ban on leaving people and cars as authorities seek to curb the spread.

Most of Europe is now subject to the most stringent lockdown measures, according to the Oxford Strictness Index, which tracks measures such as travel bans and school and workplace closures.

The Saudi crown prince revealed plans to build a carbon-free city in NEOM, in the first major construction project in the $500 billion pioneering business district that aims to diversify the kingdom’s oil-dependent economy.

But oil price losses were curbed by plans for US President-elect Joe Biden to announce bills to inject trillions of dollars in aid to mitigate the impact of the pandemic this week, most of which will be funded through increased borrowing.