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Oil Extends Losses

Oil Extends LossesOil Extends Losses

Oil prices slid for a second straight session on Monday as coronavirus cases rose in the United States and other places, leading some countries to resume partial lockdowns that could hurt fuel demand.
Brent crude dropped 83 cents, or 2%, to $40.19 a barrel, while US crude was at $37.69, down 80 cents, or 2.1%, CNBC reported.
Brent crude is set to end June with a third consecutive monthly gain after major global producers extended an unprecedented 9.7 million barrels per day supply cut agreement into July, while oil demand improved after countries across the globe eased lockdown measures.
However, global coronavirus cases exceeded 10 million on Sunday as India and Brazil battled outbreaks of over 10,000 cases daily. New outbreaks are reported in countries including China, New Zealand and Australia, prompting governments to impose restrictions again.
“The second wave contagion is alive and well,” Howie Lee, an economist at Singapore’s OCBC bank, said. “That is capping the bullish sentiment that we’ve seen in the last six to eight weeks.”
Other factors restricting oil prices’ advance at this stage include poor refining margins, high oil inventories and the resumption of US production, Lee said.
Despite efforts by OPEC+ - the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia - to reduce supplies, crude inventories in the United States, the world’s largest oil producer and consumer, have hit all-time highs.
 

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