Oil prices drop due to more European lockdowns

Gulf Today Report 

Oil prices fell on Monday, declining around 1% on concerns about decrease in demand for fuel products due to more European lockdowns.

Brent crude was down 60 cents, or 0.9%, at $63.93 a barrel by 01:36 GMT while US oil was off by 68 cents, or 1.1%, at $60.74 a barrel.

Stephen Innes, chief global market strategist at Axi said "the reality is that we're still a long way from a full demand recovery, and it's the record levels of withdrawn production capacity that's the main prop for the oil market." 

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The Organization of the Petroleum Exporting Countries and its allies have made production cuts to manage global markets following decline in demand during the COVID-19 pandemic.

The Oil and gas drilling rig tally, an early indicator of future production, rose nine to 411 last week, the highest since April, energy services firm Baker Hughes Co said in its closely followed report on Friday.

The rig count has been rising over the past seven months and is up nearly 70% from a record low of 244 in August.