Oil slides to 3-week low on China's virus curbs, strong dollar
Oil prices fell over 2% to a three-week low on Monday, extending last week’s steep losses on the back of a firmer U.S. dollar and concerns that new coronavirus-related restrictions in Asia, especially China, could slow a global recovery in fuel demand.
A United Nations panel’s dire warning on climate change added to the gloomy mood after fires in Greece razed homes and forests and parts of Europe suffered deadly floods last month.
Brent futures fell $1.66, or 2.4%, to settle at $69.04 a barrel, while U.S. West Texas Intermediate (WTI) crude lost $1.80, or 2.6%, to settle at $66.48.
Those were the lowest closes for both benchmarks since July 19. In intraday trade, WTI fell to its lowest level since May.
Wall Street banks Goldman Sachs, JPMorgan and Morgan Stanley all cut their China growth forecasts on Monday, after export growth slowed unexpectedly and on concerns that the resurgent coronavirus could crimp economic activity.
Analysts said the oil market was looking for direction from monthly data due this week - the U.S. Energy Information Administration on Tuesday, and the Organization of the Petroleum Exporting Countries and the International Energy Agency on Thursday.
Reference: Reuters
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