SINGAPORE (Reuters) – Oil prices slipped for a second session just Monday as renewed COVID-19 locks raised new concerns about global fuel demand.
Brent crude times for March fell 15 cents, or 0.3%, to $ 55.26 a barrel before 0158 GMT, while US West Texas intermediate crude for March fell at $ 52.19 per barrel, down 8 cents, or 0.2 %.
“Weak market demand signals have been measured,” ANZ analysts said, noting that locks in Hong Kong, China and possibly France as COVID-19 cases rise, are limiting industrial activity and fuel consumption.
China reported a climb in new COVID-19 issues Monday, throwing a loss over the prospect of demand in the world’s largest power consumer, the main strength mast for global oil consumption.
Friday’s prices came under further pressure after data from the U.S. Energy Information Administration showed U.S. crude deposits rose 4.4 million barrels per week to Jan. 15, compared to an expected pullback of 1.2 million barrel.
The number of oil and natural gas drafts shipped by U.S. energy companies for the ninth week in a week rose to Jan. 22, but they are still 52% lower than this time last year, data from Baker Hughes.
Some support for prices has come in recent weeks from further production cuts from the world’s major exporter, Saudi Arabia. But investors are on the lookout for a resumption of talks between the United States and Iran on a nuclear deal – which could lift Washington’s sanctions on Tehran’s oil exports, strengthening supply.
Iran’s oil minister said Friday that the country’s oil exports have skyrocketed in recent months and sold petrol products to foreign buyers higher despite U.S. sanctions.
On Sunday, Indonesia said its coast guard had seized MT Horse with the flag of Iran and the MT Freya ships with the Panamanian flag over suspicion of illegal fuel movements off the country’s waters.
Reciting with Florence Tan; Edited by Kenneth Maxwell