Crude oil prices extended last week's decline with lower trading on Monday weighed down by continued demand concerns as the United States and Europe saw another increase in the highest number of Covid-19 cases over the weekend.
The benchmark Brent crude fell 1.4% to $ 41.47 a barrel, while the US WTI declined 1.5% and traded lower at $ 39.23 a barrel, falling more than $ 1 shortly after the start of trading in the Asian session.
The United States reported the highest number of new coronavirus infections in the two days to Saturday, while in France new cases reached more than 50,000 on Sunday, indicating the seriousness of the outbreak.
In addition, the decline in black commodity prices was also affected by the return of Libyan oil exports which are expected to increase production by up to 1 million barrels a day in 4 weeks to markets that are already experiencing an oversupply.
Also pressing the price of black gold is the expectation that the Organization of Petroleum Exporting Countries and its allies, including Russia, OPEC + will loosen production cuts to 5.8 million barrels a day next January.
However, there is still no final word on it and it will be decided at OPEC meetings on November 30 and December 1. Last week, Russian President Vladimir Putin expressed his readiness to extend the reduction in oil production if necessary.
