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Oil Prices Fall on Global Demand Concern

Oil prices fell more than 1% on Monday, amid mounting fears over weakening global demand as the number of COVID-19 cases US surged in North America and across Europe.

The US saw its highest number of virus cases in two days through Saturday, while new infections in France hit a record of over 50 thousand Sunday and Spain announced a state of emergency.

Meantime, the World Bank said last week that a delay in reaching a virus vaccine will contribute to witnessing lower energy prices than forecast.

On the supply side, Libya’s National Oil ended Friday its force majeure on exports from two key ports and said output would hit 1 million barrels per day in four weeks.

Meantime, OPEC+ is also set to raise production by 2 million bpd in January 2021 after slashing output by a record amount earlier this year.

At around 03:30 AM GMT, WTI crude plunged 1.7% to $39.16 a barrel. Brent crude also slumped 1.7% to $41.08 a barrel. Last week, WTI dropped by 2.5%, while Brent fell 2.7%.

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