2020.10.2621:11:00UTC+00Oil Futures Settle Sharply Lower On Demand Concerns

Crude oil futures fell to their lowest level in three weeks on Monday as rising worries about outlook for energy demand weighed on prices.

According to reports, coronavirus cases saw record spikes in the United States and several parts of Europe over the weekend.

Fading hopes about a U.S. stimulus package and prospect of increased crude supply raised worries about energy demand.

West Texas Intermediate Crude oil futures for December ended down $1.29 or about 3.2% at $38.56 a barrel, the lowest close since October 2.

Coronavirus infections in the U.S. hit a record for the second day on Sunday. Cases in France hit a record of over 50,000 over the weekend.

France, Germany, Spain and the U.K. have announced tougher restrictions to halt the rapid spread of Covid-19 infections.

Libya's state-owned National Oil Corp on Friday lifted its force majeure on exports from two key ports, following high-level agreements on a ceasefire in the country.

The company expects that production would reach 1 million barrels per day (bpd) in four weeks, a quicker ramp-up than many analysts had predicted.

OPEC and its allies are also scheduled to increase production by 2 million barrels per day from January, but it remains to be seen whether the group will go ahead and increase output.