A barrel of Brent crude oil was trading at $66.5 on Tuesday, a nearly 1 percent discount from the previous day. Behind the price drop are fears of a rise in the coronavirus epidemic in India, which could weaken demand for black gold.
Brent crude oil fell from its monthly highs in Tuesday trading, selling for less than $67. North American WTI oil even fell as low as $62.5, losing more than a percent. In particular, the growing numbers of new coronavirus infections in India are to blame. Authorities recorded nearly 260,000 confirmed cases in a single day on Monday, the sixth time in a row that the indicator has remained above 200,000.
India is the world’s third largest importer of oil. Thus, the rise of the coronavirus epidemic raises fears that oil demand in the country could weaken. Markets expect the government to implement anti-environmental measures to dampen economic activity. In response to the new data, Indian Prime Minister Narendra Modi called on the population to reduce their mobility and contact numbers in order to limit the spread of coronavirus.
