Oil dips on signs that coronavirus measures are slowing recovery

Oil slipped to near $40 amid signals that coronavirus restrictions will slow the economic recovery and on signs of increased supply.

Futures fell as much as 0.7% in New York, after losing 2.1% last week in the third drop this month. The oil market’s recovery is expected to be long and gradual, Russia’s Energy Minister Alexander Novak said Sunday. Libya’s production has almost tripled to 250,000 barrels a day since a partial lifting of a blockade on the country’s energy facilities.

On the demand side, the economic rebound in China, the largest importer, showed signs of plateauing in September, according to early indicators. Crude prices will have little room to rise in the next quarter because the recovery in global demand is slowing due to new coronavirus-related restrictions on the economy, according to Vitol Group executive committee member Chris Bake.

Saudi Aramco exported its first cargo of refined fuel from the Jazan refinery as the company prepares to start commercial shipments from the Red Sea plant next year.