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Oil futures traded lower Monday, with analysts tying weakness to signs of a pickup in COVID-19 infections in some parts of the world.
West Texas Intermediate crude for June delivery CL.1, -2.78% CLM20, -2.78% on the New York Mercantile Exchange fell 67 cents, or 2.7%, to $24.07 a barrel. The front-month contract rose 25.1% last week, according to Dow Jones Market Data.
Global benchmark July Brent crude BRNN20, -2.93% were off 88 cents, or 2.8%, at $30.09 a barrel on ICE Europe. Brent last week logged a 17.1% weekly climb.
“Investors will be hoping the U.S. continues it’s swift production shutdown to support prices, while concerns over a spike in infections will also weigh heavily on their decision making,” said Mihir Kapadia, chief executive of Sun Global Investments, in a note.
Germany, which loosened restrictions after pushing the number of new daily infections below 1,000, saw regional increases in cases linked to slaughterhouses and nursing homes. China saw 14 new cases Sunday, the first double-digit rise in 10 days, while South Korea saw a rise in cases linked to night clubs.
Read:Scientists expect an acceleration of coronavirus cases as states reopen
See:COVID-19 case tally: 4.1 million cases, 282,947 deaths
Oil’s recent bounce has been fueled by optimism over prospects for reopening the U.S. and global economy alongside a sharp drop in production. Crude prices have been slammed this year as the pandemic crushed demand, contributing to a global glut of crude that was exacerbated by a month-long price war between Saudi Arabia and Russia that added to the tide of unneeded oil.
