Overseas Demand Fears Weaken U.S. Oil Prices to Multi-Month Lows
- West Texas crude oil sinks to lowest level in eight months
- Europe sees renewed restrictions as India Covid deaths rise
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U.S. crude producers are selling their supply at the lowest prices in months on dimming prospects of a steady recovery in demand from Europe to India.
West Texas Intermediate crude produced in the Permian Basin traded Tuesday at the smallest premium to Nymex oil futures since June as countries extend pandemic restrictions. Germany, France and Italy widened lockdowns this week to combat a resurgence in cases, clouding their path to recovery after battling the virus for a year. India’s oil demand is also uncertain after a surge in Covid-19 cases that threatens its return from recession. The South Asian nation was the largest buyer of U.S. oil in January.