Brent falls below $40/barrel, near 3-month low

Brent crude continued to drop as the US market opened on Monday, to resume losses and drop below $40 near a 3-month low, weighed down by fears over the global demand due to rising coronavirus infections in many countries led by the US.

Brent crude fell 0.8% to $39.42, after opening at $39.72, and hit a high of $40.06.

Brent crude futures rose 0.25% on Friday, after gaining 2% on Thursday following the EIA's weekly report.

Oil prices lost around 5% during the past week, posting the second straight weekly loss due to renewed doubts about the global demand recovery.

Brent fell earlier last week to its lowest since June 16 at $39.34 a barrel, after an unexpected build in the US crude inventories.

The coronavirus crisis continues to deter the global market, as cases spiked in India, the UK, Spain and many parts of the US, which renewed concerns about the global fuel demand.

The Eurasia Consulting Group noted that the coronavirus outbreak threatens the global economic recovery hopes, which will weigh on demand for fuel, but low prices may lift refineries' profits.