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Italy recorded its highest daily number of infections on
Thursday and cases surged by at least 120,276 in the United
States, the second consecutive daily record as the outbreak
spreads across the country.
Brent crude fell 60 cents, or 1.5%, to $40.33 at 0915 GMT. U.S.
West Texas Intermediate (WTI) dropped 59 cents, or 1.5%, to
$38.20. Both contracts fell more than $1 earlier in the day.
Still, Brent was heading for a near 8% gain this week, having
fallen in the previous two weeks.
"As market players clamour for election clarity, demand jitters
are once again taking their toll on the energy complex," said
Stephen Brennock of broker PVM.
In the U.S. election, Democratic candidate Joe Biden gained more
ground on President Donald Trump in Georgia and Pennsylvania,
edging closer to the White House hours after Trump falsely
claimed the election was being "stolen" from him.
Diminishing prospects of a large U.S. stimulus package were also
weighing on the market.
"Any hope of a gargantuan US fiscal stimulus package is almost
gone," said Jeffrey Halley of brokerage OANDA. "Covid-19's
rampage across Europe and the U.S. is likely to deliver a hit to
consumption."
Providing some support, the Organization of the Petroleum
Exporting Countries and allies including Russia, a group known
as OPEC+, may delay bringing back 2 million barrels per day of
supply in January, given weaker demand from new lockdowns.
And U.S. crude inventories plunged last week by 8 million
barrels, against analyst expectations for an increase. [EIA/S]
(Additional reporting by Aaron Sheldrick; Editing by Emelia
Sithole-Matarise)
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