Oil prices drop on fuel demand worries as coronavirus flares up

Oil prices drop on fuel demand worries as coronavirus flares up

An aerial view shows pumpjacks in the South Belridge Oil Field on April 24, 2020 near McKittrick, California. Oil prices fell in early trade on Tuesday on concerns about fuel demand growth as a fresh wave of COVID-19 infections around the world sparks tighter lockdowns just as major producers ramp up output. U.S. West Texas Intermediate (WTI) crude futures fell 22 cents, or 0.5% to $40.79 a barrel at 0132 GMT, while Brent crude futures fell 27 cents, or 0.6% to $43.88 a barrel. The slide comes after WTI rose 1.8% and Brent climbed 1.5% on Monday on better-than-expected data on manufacturing activity in Asia, Europe and the United States showing factories were emerging from the worst of the early coronavirus pandemic impact. "On the demand side, we had quite encouraging global manufacturing (data) ... but there's still quite a bit of evidence of the oil demand recovery stalling in quite a few markets with a resurgence of COVID-19," said Lachlan Shaw, head of commodity research at National Australia Bank (NAB). Denting fuel demand, cities from Manila to Melbourne are tightening lockdowns to battle new infections, while Norway has stopped cruise ship traffic in the latest European travel alarm. In a further sign of a patchy rebound in demand, analysts estimate U.S. refined product stockpiles rose last week, according to a preliminary Reuters poll ahead of data due from the American Petroleum Institute industry group later on Tuesday and the U.S. government on Wednesday. Five analysts ...
More on: www.cnbc.com