Oil Prices Drop 2% as the Covid-19 Surge in U.S. Weighs on Oil Demand

Oil prices dropped more than 2% in the afternoon Asia trading session of October 26, 2020, as a surge in the U.S. and Europe coronavirus infection weighed on global oil demand.

 

West Texas Intermediate (WTI) for December fell $0.89 per barrel or 2.21% to $38.96. The global benchmark Brent Crude for December dropped $0.88 per barrel or 2.11% to $40.89.

 

The U.S. reported a new record high of coronavirus cases with more than 83,000 cases Friday and Saturday after an outbreak in Sun Belt states that broke the U.S. previous record high at 77,300 cases back in July.

Meanwhile, OPEC+ is expected to increase output by 2 million bpd in January after the group agreed to a production cut by a record amount earlier this year.