Search ForexCrunch

Fresh lockdown measures imposed in Europe to contain the COVID-19 contagion is likely to lower the global oil demand outlook, Keisuke Sadamori, the International Energy Administration (IEA) Director for Energy Markets and Security, said in a Reuters interview on Monday.

Additional quotes

“Major parts of the European continent are in lockdown. This would surely work toward the negative side.”

“We certainly expect this time for there to be a lower impact than the last lockdown … This time schools are kept open and some of the stores are still open.”

“The oil and gas industry, in the US in particular, is looking at the outcome of this election with a huge amount of interest.”

“If the Democrats plan for radical energy low-carbon transformation — if the Senate remains in the hands of Republicans, there will be obstacles to that legislation. Overall, we need to see the entire outcome.”

Note that IEA is due to publish its next report on the oil market on Thursday.

Market reaction

The above comments dragged the US oil down to daily lows of $37.76 before the bulls regained control.

WTI trades at $38.12, up 2.64% on a daily basis, as of writing.