TOKYO (Reuters) – Oil prices fell on Monday, extending losses that ended last week led by production cuts and strong Chinese demand, with questions over market recovery outlook as coronavirus infections rising.
Brent crude fell 45 cents, or nearly 1%, to $ 54.65 per barrel before 0207 GMT, after dropping 2.3% on Friday. U.S. oil fell 43 cents, also nearly 1%, at $ 51.93 a barrel, after falling 2.3% in the previous trading session.
The criteria were met a few weeks ago, prompted by the start of the COVID-19 vaccine rollout and a dramatic cut in crude products by the world’s largest oil exporter, Saudi Arabia. New diseases around the world, however, have raised doubts about how long demand will last.
U.S. drillers put more pressure on putting more oil and natural gas into operation for an eighth consecutive week last week as rising prices have made production more profitable. However, the number of operating rigs is less than half the level a year ago. [RIG/U]
“Coal manufacturers have stated that they will continue to control their consumption,” ANZ Research said in a note. “The economy is also not in favor of an increase in drilling, with half the industry still uneconomic.”
U.S. coal miners have reacted quickly to market gains in recent years, gaining market share as Saudi Arabia and other major producers such as Russia have cut output in a bid to support oil prices. is a global stem.
In China, where new COVID-19 infections have been on the rise, more than 28 million people are in captivity and Beijing is trying to avoid recurrence of the coronavirus in the country where it was first discovered .
Reporting by Aaron Sheldrick; Edited by Tom Hogue