Oil Prices Fall on Worries Over Fuel Demand Setback as Infections Rise

Oil prices dropped on Monday, amid concerns that a recovery in fuel demand could be derailed by a rise in the pace of coronavirus infections around the world.
Brent crude was down 36 cents, or 0.8%, at $42.78 a barrel, after dropping slightly last week. US oil was off by 34 cents, or 0.8%, at $40.25 a barrel, after gaining 4 cents last week, Reuters reported.
More than 14.5 million people have been infected by the novel coronavirus globally and more than 604,000 have died of Covid-19, the disease caused by the pathogen.
While fuel demand has recovered from a 30% drop in April after countries around the world imposed strict lockdowns, usage is still below pre-pandemic levels. US retail gasoline demand is falling again as infections rise.
Japan’s oil imports fell 14.7% in June from the same month a year earlier, official figures showed on Monday. The drop was not as pronounced as in May when they fell 25%, year on year.
Still, exports from the world’s third-largest economy slumped by a double-digit decline for the fourth month in a row as the coronavirus pandemic took a heavy toll on global demand.
The market largely shrugged off news that Saudi Arabia’s 84-year-old ruler, King Salman bin Abdulaziz, has been admitted to hospital, suffering from inflammation of the gall bladder.