Global oil prices fell more than 1 on Friday, extending losses and on track for a second monthly fall, on growing concerns that the rise in COVID19 cases in Europe and the United States could hurt fuel consumption.
Brent crude slipped for a third day and was down 60 cents, 1.6, at 37.05 a barrel by 0720 GMT after touching a fivemonth low in the previous session. December Brent contract expires on Friday.
U.S. West Texas Intermediate WTI crude declined 53 cents, or 1.5, to 35.64 a barrel after dipping to its lowest since June on Thursday.
Prices had swung between parity and a more than 2 decline during Fridays session as the market is anxious over renewed lockdowns in Europe and U.S. elections next week, a Singaporebased oil trader said.
OCBCs economist Howie Lee said Selling pressure is piling up again.
Numbers dont look good fundamentally and lockdowns not helping.
The Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC, are expected to raise their output by 2 million bpd in January as part of their production agreement.
However, top producers Saudi Arabia and Russia are in favour of maintaining the groups output reduction of about 7.7 million bpd currently into next year amid lockdowns in Europe while Libya has resumed production.
OPEC is scheduled to meet on Nov. 30 and Dec. 1 to set policy.
With a European slowdown jeopardising global consumption and the return of Libyan production, the onus must now…