Oil drops as European lockdowns douse hopes for fuel demand recovery

22.03.2021 - Evdokimov Roman
Oil drops as European lockdowns douse hopes for fuel demand recovery

Oil prices fell on Monday, losing nearly 1% as fears about a decline in fuel demand amid new European lockdowns dominated markets.

Brent crude dropped 0.9%, or 60 cents, at $63.93 per barrel, while U.S. oil lost 1.1%, or 68 cents, at $60.74 per barrel. Both benchmarks slid by over 6% last week.

Germany plans to extend restrictions to control COVID-19 infections into a fifth straight month as fresh cases exceeded expected levels.

OPEC and its allies have implemented unprecedented cuts to balance global markets after demand dropped during the coronavirus pandemic.

U.S. drillers are taking advantage of an earlier surge in prices on optimism about demand recovery, adding the highest number of rigs since January.

The oil and gas drilling rig tally climbed nine to 411 last week, the highest since April. The rig count has risen in the last seven months and is up almost 70% from a record low of 244 in August. 

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?