Crude oil prices are slightly lower Monday morning amid continued concerns about outlook for energy demand due to the coronavirus pandemic.
A report from OPEC showing a downward revision in its outlook for global oil demand for the year is weighing on crude prices.
West Texas Intermediate Crude oil futures for October are down $0.05 or 0.13% at $37.28 a barrel, coming off a low of $36.85 a barrel.
Citing the likely slow pace of recovery of the Indian economy as well as that of several other Asian countries, OPEC has lowered its oil demand forecast for the year to about 90.2 million barrels per day, down by about 400,000 barrels from its August estimate.
OPEC has also said that demand for oil is likely to be low in the first six months of the coming year as well. “Additionally, risks remain elevated and skewed to the downside, particularly in relation to the development of Covid-19 infection cases and potential vaccines,” the group said in the report.
An announcement from Libya that it would end its months-long blockade and resume output also contributed to oil’s weakness earlier in the session.