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Brent crude was 84 cents, or 1.2% lower, at $67.22 a barrel by
1016 GMT, the last day of trading for the front-month June
contract. U.S. West Texas Intermediate crude for June was at
$64.04 a barrel, down 97 cents, or 1.4%.
Prices also came under pressure after China's factory activity
growth slowed and missed forecasts in April, although a private
sector survey showed that Japan's factory activity expanded in
April at the fastest pace since early 2018.
"The post-COVID-19 demand recovery is still uneven and the surge
in Indian cases serves as a timely reminder that any rally to
$70 is too premature," Energy Aspects analysts said in a note.
Such a level is likely to be reached only in the third quarter
this year, when demand improves materially and destocking ends,
they said.
The world's third largest oil consumer is in deep crisis, with
hospitals and morgues overwhelmed, as the number of COVID-19
cases topped 18 million on Thursday.
The surging infection numbers and renewed mobility-restricting
measures have "forced us to revise down Indian gasoline and
gasoil demand" estimates for 2021, said JBC Energy's senior
analyst Eugene Lindell.
Brent is on track to gain around 7% in April while WTI could end
around 8% higher.
That would be their fifth monthly gain in six as global demand
has almost returned to pre-pandemic levels on the back of fiscal
stimulus and the easing of virus lockdowns in some countries,
while production cuts from OPEC and their allies including
Russia eased crude oil oversupply.
(Additional reporting by Florence Tan; Editing by Kirsten
Donovan)
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