Crude oil fell to seven-week lows on Monday, extending declines after the previous session’s slide, on concerns about excess supply after Japan said it was weighing releasing oil reserves and over demand from a worsening COVID-19 situation in Europe.
Brent lost 57 cents, or 0.72%, to $78.32 a barrel as of 0206 GMT and U.S. West Texas Intermediate (WTI) crude futures were down 39 cents, or 0.51%, at $75.55 a barrel. WTI and Brent prices hit their lowest since Oct. 1 earlier in the session.
They slumped around 3% on Friday. Japanese Prime Minister Fumio Kishida signaled on Saturday he was ready to help counter soaring oil prices following a request from the United States to release oil from its emergency stockpile. Meanwhile, concerns are growing that renewed COVID-19 curbs could hit demand.
Germany warned on Friday it may need to move to a full lockdown after Austria said it would reimpose strict measures to tackle rising infections. “Austria imposed a lockdown earlier this month, while Germany is poised to agree on mandatory remote working,” ANZ said in a note. “In Ireland and the Netherlands, people have already been instructed to work from home where possible.
