Oil prices opened lower on Monday:
Thus and during the session of Monday, the prices of the crude oil knew a light fall whereas the market shows itself worried by the rise of the number of contaminations with Covid-19 in India which currently beats records. This movement had already been started at the end of last week.
Remember that India is a real engine of demand for black gold. In addition, investors are looking forward to the OPEC+ meeting to be held tomorrow.
Thus, the barrel of Brent North Sea oil for delivery in June ended the first session of the week with a drop of 0.70% to 65.65 dollars on the London market. This represents a loss of 46 cents a barrel compared to its Friday close.
As for WTI crude oil, it also fell 0.37% or 23 cents to $61.91 at the close.
India worries markets over Covid-19:
The decline in crude oil prices is of course related to the situation in India, which has the markets worried. Indeed, traders fear that the country will impose new restrictions even more drastic in order to curb this epidemic, which would have direct consequences on the demand for black gold.
It should be remembered that India has recorded more than 350,000 new contaminations of the Coronavirus in 24 hours on Sunday, a world record. The local authorities thus decided to extend the confinement of the capital New Delhi by one week. However, the drop in oil demand is limited for the moment because the government has not yet set up a national containment but is satisfied with regional restrictions.
India's situation is likely to be addressed by OPEC+ ministers at tomorrow's meeting. Indeed, two meetings will bring together tomorrow the members of the Organization of the Petroleum Producing Countries and their ten allies, including a ministerial summit only four weeks after the previous one. A month ago, they decided to increase production by 350,000 barrels per day in May and June and 450,000 in July.