Oil Edges Lower as Rising Infections Stir Demand Worries

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Oil futures lost ground Monday, with weakness tied in part to concerns over the demand outlook as COVID19 infections outside the U.S. continued to rise.

West Texas Intermediate crude for May delivery fell 10 cents, or 0.2, to 63.03 a barrel on the New York Mercantile Exchange. June Brent crude the global benchmark, was off 10 cents, or 0.1, at 66.67 a barrel on ICE Futures Europe.

We can certainly see some risks on the demand side in emerging economies in particular, which are responsible for a large part of the recovery in demand, numbers of new COVID19 infections have jumped sharply of late, which could jeopardize the economic recovery there, wrote Eugen Weinberg, commodity analyst at Commerzbank, in a note.

This is presumably why demand for fuel in India, the worlds thirdlargest crude oil importer, has declined again recently, he said, noting data from state refinery companies that showed diesel demand in the first half of April fell 3 to 1.38 million barrels a day. Meanwhile, gasoline demand, which tends to track private consumption, dropped by 5 to 561,000 barrels a day, he noted.

India has replaced Brazil as the country with the second highest number of cases at 15.1 million, and is fourth globally by deaths at 178,769. Brazil is third by cases at 13.9 million and second with a death toll of 373,335 Mexico is third by deaths at 212,339 and 14th highest by cases at 2.3 million. 

Analysts said a weaker tone for the U.S. dollar helped offset pressure on crude….

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