Oil falls 2% as fresh lockdowns, demand concerns weigh on OPEC+
Oil prices fell about 2% on Wednesday as fresh lockdowns in Europe stoked fuel consumption fears and a pessimistic demand outlook from OPEC and its allies ahead of their meeting to decide on production curbs.
Brent crude for May, which expired on Wednesday, settled at $63.54 a barrel, down 60 cents, or 0.9%. The more active contract for June ended $1.43, or 2.2%, lower at $62.74.
U.S. West Texas Intermediate (WTI) crude futures closed at $59.16 a barrel, losing $1.39, or 2.3%.
Brent was down 3.9% for the month and up 22.6% for the three months ended March 31. WTI fell 3.8% in March and rose 21.9% for the quarter.
Prices rose in the quarter mainly due to demand-recovery optimism after COVID-19 vaccines began to roll out in the new year. However, those hopes were dampened this month amid a resurgence in cases that threaten to overwhelm hospitals in European countries and curtail demand for fuel.
Oil prices on Wednesday extended their losses after President Emmanuel Macron ordered France into its third national lockdown and said schools would close for three weeks as he sought to push back a third wave of COVID-19 infections.
OPEC+ panel lowers oil demand growth forecast
A downward revision of OPEC+ oil demand growth forecast for this year by 300,000 barrels per day (bpd) also weighed on prices. The Organization of the Petroleum Exporting Countries and allies, together called OPEC+, are set to meet on Thursday, to decide on output policy.
Reference: Reuters
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