2020.09.3010:44:00UTC+00Oil Extends Losses On Demand Worries

Oil prices extended losses on Wednesday amid concerns that rising number of coronavirus cases in the U.S. and Europe would lead to further restrictions on activity and curb demand for fuel.

Renewed uncertainty over U.S. presidential elections and the Congressional stalemate on a stimulus package also kept traders and investors on tenterhooks.

Benchmark Brent crude fell 61 cents, or 1.5 percent, to $40.95 per barrel, while West Texas Intermediate crude futures were down 52 cents, or 1.3 percent, at $38.77 a barrel.

The benchmarks fell more than 3 percent on Tuesday as the world officially recorded 1 million deaths from Covid-19 in one of the most sobering milestones of the pandemic.

Germany has outlined new coronavirus measures in a bid to contain the spread of the virus over autumn and winter.

French health authorities on Tuesday reported 8,051 new Covid-19 infections over the past 24 hours, up sharply from Monday's 4,070 despite the government ramping up measures aimed at containing the resurgence of the virus.

Britain reported 7,143 new coronavirus cases on Tuesday, the highest single figure to date. Spain's government plans to restrict movement in major cities facing severe outbreaks of Covid-19.

New York City reported a coronavirus daily positivity rate of 3.25 percent and a 7-day average of 1.38 percent.

Meanwhile, the American Petroleum Institute (API) reported late Tuesday a draw in crude oil inventories of 831,000 barrels for the week ending September 25 - but this draw was more than offset by a build in gasoline inventories. Inventory data from the Energy Information Administration will be out later in the day.