Oil Dips With Near-Term Demand Concerns Holding Back Rally

  • Covid-19 resurgence in China threatening holiday demand boost
  • U.K the first European country to exceed 100,000 Covid deaths
Photographer: Angus Mordant/Bloomberg
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Oil edged lower as the worsening near-term coronavirus outlook raised concerns over the obstacles still facing crude’s fledgling recovery.

Futures in New York fell less than 1% Tuesday after a choppy session. While much of the world awaits a wider distribution of the vaccine, a coronavirus flare-up in China is threatening fuel demand during the Lunar New Year. Oil pared most of its loss for the day after the American Petroleum Institute was said to report a drop in U.S. crude stockpiles.