On Monday, oil prices fell due to the fears of the second wave of coronavirus outbreak in the midst of lockdown eases.
By 01.14 GMT, Brent crude oil futures slumped by 2.4% or 73 cents to USD30.24/barrel while the US WTI crude oil futures slashed 3.3% or 81 cents to USD23.93/barrel.
In the last two weeks, oil prices have booked gains as many governments have eased lockdowns on business and social activities, driving fuel demand to modestly rebound. The oil production cuts from several producers also have provided some supports.
However, investors are starting to worry as there have submerged possible signs of a second wave of coronavirus outbreak in northeast China and South Korea.
On a side note, for the week ended May 8, the number of US operating oil and gas rigs went down to 374, a record low, according to Baker Hughes Co.
Going forward, Tony Nunan of Mitsubishi Corp. opined that the US capability to shut production has surprised the market and could possibly help buoy the prices.
He commented, “There are another 10 days before the June contract expires. If the WTI contract can avoid a crash going into expiry, hopefully, we have seen the bottom.”
