11.05.202010:30:00UTC+00Oil Prices Fall Amid Fears Of Second Wave Of Infections

Oil prices fell over 2 percent on Monday as China, Germany, and South Korea have all reported substantial new outbreaks of Covid-19 after they eased lockdown restrictions.

Benchmark Brent crude fell by 77 cents, or 2.5 percent, to $30.20 a barrel, while U.S. West Texas Intermediate crude futures were down 51 cents, or 2.1 percent, at $24.23.

As Europe and the U.S. ease curbs, there are growing fears that too hasty a return to normal could spark a second wave of coronavirus infections.

Germany has seen regional spikes in cases linked to slaughterhouses and nursing homes, official data showed Sunday, just days after Chancellor Angela Merkel said the country could gradually return to normal.

Some 17 new Covid-19 cases were reported on the Chinese mainland, including 10 local transmissions on Monday. Elsewhere, South Korea has reported 35 new virus cases, the highest daily spike since April 9.

Concerns over a persistent glut also weighed on the commodity. Fuel demand across Indian state-controlled refiners declined by 45.8 percent year-on-year in April because of a nationwide lockdown to fight the coronavirus outbreak, government data showed.

Consumption of fuel, a proxy for oil demand, totaled 9.93 million tons, its lowest since 2007.

Global oil demand also remains weak, causing a rising glut of supply around the world.