Oil prices fell on fears of the increasing in Covid-19 cases

Shafaq News / Oil prices plunged on Wednesday on fears of the increasing in coronavirus cases in the world heading into the northern winter would lead to further restrictions on activity and curb demand for fuel.

Brent crude was down 40 cents, or 1.03 %, to $ 41.13 a barrel by 04:56 GMT.

 West Texas intermediate fell 35 cents, to $ 38.91.

The benchmarks fell more than 3% on Tuesday as the global COVID-19 cases passed 19 million, having doubling in three months.

The recent Covid-19 cases in some regions has raised concern among traders and countries, which negatively affected the crude demand which is clearly a problem for the market.

Weighing heavily on markets is the continued depressed demand for jet fuel, with air travel in the doldrums due to coronavirus restrictions and a general disinclination to travel.

The market looked past data from the American Petroleum Institute on Tuesday showing U.S. crude oil stocks fell against expectations, focusing instead on the rise in gasoline inventories.

Also keeping traders and investors on tenterhooks is the November presidential election, which may remain undetermined on election night, with both candidates contesting the results.

CEOs of the world's largest trading companies expect a weak recovery in oil demand and a slight price movement in the coming months and possibly years.