Oil prices fall for 2nd session as COVID-19 lockdown concerns cast pall over demand prospects

By Florence Tan
SINGAPORE, Jan 25 (Reuters) - Oil prices slipped for a
second straight session on Monday as renewed COVID-19 lockdowns
raised fresh concerns about global fuel demand.
Brent crude futures LCOc1 for March fell 15 cents, or
0.3%, to $55.26 a barrel by 0158 GMT, while U.S. West Texas
Intermediate crude CLc1 for March was at $52.19 a barrel, down
8 cents, or 0.2%.
"Signs of weaker demand weighed on the market," ANZ analysts
said, pointing to lockdowns in Hong Kong, China and possibly
France as COVID-19 cases rise, restricting business activity and
fuel consumption.
China reported a climb in new COVID-19 cases on Monday,
casting a pall over demand prospects in the world's largest
energy consumer, the main pillar of strength for global oil
consumption. Last Friday prices came under further pressure after data
from the U.S. Energy Information Administration showed U.S.
crude inventories surprisingly rose by 4.4 million barrels in
the week to Jan. 15, versus expectations for a draw of 1.2
million barrels. EIA/S
The number of oil and natural gas rigs added by U.S. energy
firms rose for a ninth week in a row in the week to Jan. 22, but
are still 52% below this time last year, data from Baker Hughes
showed. Some support for prices has come in recent weeks from
additional production cuts from the world's top exporter, Saudi
Arabia. But investors are watching for a resumption of talks
between the United States and Iran on a nuclear accord - which
could see Washington lifting sanctions on Tehran's oil exports,
boosting supply.
Iran's oil minister said on Friday the country's oil exports
have climbed in recent months and its sales of petroleum
products to foreign buyers reached record highs despite U.S.
sanctions. On Sunday, Indonesia said its coast guard had seized the
Iranian-flagged MT Horse and the Panamanian-flagged MT Freya
vessels over suspected illegal fuel transfers off the country's
waters.