Oil prices experienced a decline on Monday, influenced by concerns regarding global demand. This comes at a time when COVID-19 cases have seen a significant surge across the world.
The benchmark Brent crude futures recorded a drop of 28 cents, which represents a 0.4% decrease, settling at $70.81 per barrel. Similarly, US West Texas Intermediate (WTI) crude futures saw a decrease of 34 cents, a 0.5% fall, trading at $68.25 per barrel. Both of these key oil benchmarks had already experienced a decline of more than 1% in the preceding week.
Despite the overall rise in COVID-19 cases, there have been indications of the pandemic easing in certain regions. This has, in turn, led to an increase in travel activities in those areas. However, the broader concerns about the global health situation and its potential impact on economic activity continue to weigh on oil prices.