Economy

Oil prices down with record new virus cases in US state

Rising number of COVID-19 cases lowers economic recovery outlook and oil consumption in US

Ovunc Kutlu   | 13.07.2020
Oil prices down with record new virus cases in US state

ANKARA

Crude oil prices were down on Monday as a record number of new coronavirus (COVID-19) cases in the US state of Florida weakens oil demand outlook.

International benchmark Brent crude was trading at $42.88 per barrel at 0640 GMT at 0640 GMT on Monday for a 0.83% loss after closing Friday at $43.24 a barrel.

American benchmark West Texas Intermediate was at $40.20 a barrel at the same time for a 0.86% decline after ending Friday at $40.55 per barrel.

The number of new COVID-19 cases in the US state of Florida soared by 15,299 on Saturday, according to the Florida Department of Health on Sunday.

This set the record for the highest COVID-19 cases in the country in a single day for any US state.

The rising number of cases impairs economic recovery and oil demand in the world's largest oil-consuming nation and curtails crude prices.

On the supply side, more risks of additions to the supply glut have arisen with Libya’s preparations to restart oil production and exports, which also poses a threat to the oil price recovery.

The number of oil rigs in the US, an indicator of short-term production in the country, fell by 4 to 181 for the week ending July 10, from 185 the previous week, according to the latest data released from oilfield services company Baker Hughes on Friday.

Over the past 17 weeks, the decline in the oil rig count totaled 502, the data showed.

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