Singapore, Dec. 20 (BNA): Oil prices fell more than 2% on Monday, as rising Omicron coronavirus cases in Europe and the United States stoked investor fears that new restrictions on companies to combat its spread could hurt fuel demand.
Brent crude futures fell $1.92, or 2.6%, to $71.60 a barrel by 0436 GMT, while US West Texas Intermediate crude futures fell $2.09, or 3%, to $68.77 a barrel, Reuters reported.
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“(This is) due to concerns of imminent restrictions on economic activities to contain the current increasing spread of the COVID-19 Omicron variant around the world which could increase the risk of slowing demand.”
The Netherlands went into lockdown on Sunday, and the prospect of more COVID-19 restrictions looming before the Christmas and New Year holidays loomed over many European countries.
US health officials on Sunday urged Americans to get booster doses, wear masks and be careful if they travel during the winter holidays, as the Omicron species has spread worldwide and was set to take over the dominant strain in the United States.
Meanwhile, US energy companies this week added oil and natural gas rigs for the second week in a row.
The number of oil and gas rigs, an early indicator of future production, rose by three to 579 in the week to December 17, the highest level since April 2020, energy services company Baker Hughes said in its closely watched report on Friday.
However, exports from Russia are expected to decline with oil exports and transit from the country planned at 56.05 million tons in the first quarter of 2022 compared to 58.3 million tons in the fourth quarter of 2021, a quarterly export schedule seen by Reuters on Friday showed.
Chinese diesel exports in November fell 69 percent from their level a year ago, as refineries prioritized domestic supply to ease the fuel crisis, as state-backed refineries raised oil processing rates.
MI