Crude oil futures were down over 0.5% to trade around $40.6 a barrel after briefly turning positive in early European hours on Monday, amid mounting concerns over fuel demand recovery and latest Chinese data.
Investors remain concerned about rising global coronavirus infections and its impact on fuel demand recovery as the recent surge in cases led some countries to impose fresh restrictions.
Also, recent data from China showed Q3 GDP came in weaker than expected, rising worries that a spike in global COVID-19 cases are impacting demand in the world’s largest oil importer. Putting a floor under prices were hopes of further US stimulus.
Traders will closely monitor the Joint Ministerial Monitoring Committee meeting of the OPEC+ group later in the day. The JMMC may decide whether it will delay plans reduce its current supply cuts of 7.7 million barrels per day by 2 million bpd starting in January.