Oil reaches 7-week low on supply volumes, European Covide increases

By Sonali Paul and Navin Tukral

MELBOURNE (Reuters) – Crude oil fell to a seven-week low on Monday, declining after a slide last week, with Japan releasing oil reserves and risking an oversupply of demand for worse COVID-19 in Europe.

Brent is down 57 cents or 0.72% to $ 78.32 at 0206 GMT and US West Texas Intermediate (WTI) crude futures by 39 cents or 0.51%, at $ 75.55 per barrel.

WTI and Brent prices have been down since October 1 earlier in the session. They fell by about 3% on Friday.

On Saturday, Japanese Prime Minister Fumio Kishida said on Saturday that the United States was ready to deal with rising oil prices.

Meanwhile, there are growing concerns that the revised CV-19 restrictions could hurt demand.

He warned that Germany would have to go to full lockout on Friday, after which Austria said it would take “severe measures” to combat the growing number of infections.

“When Austria closes its doors earlier this month, Germany is preparing for compulsory distance work,” the ANZ said in a statement.

“People in Ireland and the Netherlands have been instructed to work from home as much as possible. This will come at a time when oil is being released from strategic reserves in China and the United States.”

Days after the White House negotiated with some of the world’s largest economies, the White House reiterated its call for a full-fledged OPEC.

In Japan, however, laws only allow supply restrictions or natural disasters.

“We will continue to consider what we can do legally to ensure that Japan cooperates with the United States and other relevant countries,” Kishida told reporters.

The U.S. Commodity Futures Trading Commission said Friday that financial managers have narrowed their long-term U.S. futures and options for the week to November 16.

Saudi state media reported on Monday morning that investors in the Middle East were watching developments in the Middle East, as Saudi state media reported that a coalition fighting the Iranian-backed Houthi movement in Yemen could jeopardize exploration and world trade south of the Red Sea.

(Reporting by Sonali Paul and Navin Tukral; Correction by Sam Homs and Moralikumar Anataraman)

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