(Bloomberg) -- Oil held losses near $52 a barrel amid signs a resurgence of the coronavirus in Asia is starting to impact demand in the world’s biggest crude-importing region.
Futures in New York edged lower from Friday after not settling on Monday due to a public holiday in the U.S. Premiums for Russia’s ESPO crude, a favorite of refiners in Asia, have fallen by more than $1 since last month, according to traders who asked not to be identified. Much of Japan is under a state of emergency and there’s been a flurry of new Covid-19 cases in parts of China.
Indian energy demand also got off to a shaky start in the new year, with sales of transport and cooking fuels over the first two weeks of 2021 declining from a month earlier, according to preliminary data released Monday.
After a scorching start to 2021 as Saudi Arabia announced unilateral output cuts, crude’s rally has stalled over the past few sessions. More virus lockdowns and travel restrictions are sapping short-term demand, while gains in the dollar have made oil, which is priced in the currency, less appealing.
The market is now looking ahead to the inauguration on Wednesday of U.S. President-elect Joe Biden, who is proposing a $1.9 trillion Covid-19 relief package that promises to boost the economy and energy demand if passed.
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