Crude-oil futures ended higher Monday, recouping some of last week’s losses, but concerns that the rise in coronavirus cases throughout the globe will lead to weaker energy demand has grown.
West Texas Intermediate crude for November delivery climbed 35 cents, or 0.9%, to settle at $40.60 a barrel on the New York Mercantile Exchange.
Front-month November Brent rose 51 cents, or 1.2%, at $42.43 a barrel on ICE Futures Europe. The November contract expires at the end of Wednesday trading.
December Brent, the most actively traded contract, climbed 46 cents, or 1.1%, to reach $42.87 a barrel reported MarketWatch.
“The main concern remains the sustainability of the tentative global economic recovery seen since 2Q, and the possible impact of a spike in infections into the northern hemisphere winter,” said Stephen Innes, chief global markets strategist at AXIcorp.
Contributing to support to oil prices Monday, however, was a possible disruption to oil output in Norway. The Norwegian Oil and Gas Association said oil firms in Norway plan to close down 22% of the country’s oil-and-gas output, or 900,000 barrels of oil equivalent per day, if oil workers go on strike Wednesday, Reuters reported Friday.
“Oil is likely to see volatility this week” on the back of the worries surrounding the potential oil workers’ strike in Norway, said David Madden, market analyst at CMC Markets UK, in a Monday update.
Source: MarketWatch
