Oil futures fell sharply on Tuesday, sending U.S. and global benchmark crude prices to their lowest finish in two weeks.
West Texas Intermediate crude for November delivery fell $1.31, or 3.2%, to settle at $39.29 a barrel on the New York Mercantile Exchange, after gaining 0.9% on Monday.
Front-month November Brent lost $1.40, or 3.3%, to end at $41.03 a barrel, after climbing 1.2% in the prior session. The contract expires at the end of Wednesday’s session.
MarketWatch reported investors worried about rising cases of COVID-19 throughout the globe, a development that may harm appetite for oil and other energy assets in the longer-term.
The global death toll from the coronavirus pandemic has surpassed one million globally, while the U.S. accounts for more than a fifth of the nearly 33.4 million cases, with more than 200,000 deaths.
“For the market, it is a reminder that the unprecedented challenges created by COVID-19 and efforts to limit the spread offer little in the way of quick solutions, ” said Robbie Fraser, senior commodity analyst at Schneider Electric, in a daily note. The pandemic also represents “a significant and ongoing downside risk as the crude market looks to continue a demand rebound.”
Source: MarketWatch