Oil prices drop amid coronavirus case jump

The price of Brent crude oil has fallen by $1 per barrel as of Monday morning as tougher coronavirus restrictions are implemented into Europe and China owing to a sharp rise in cases in the weeks prior.

Despite climbing in price over the previous four sessions, the price of oil fell to a session low of $54.99 per barrel earlier today.

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West Texas Intermediate fell by 1% to $51.72 a barrel after climbing to its highest records in a year on Friday.

The coronavirus pandemic has taken its toll on the oil and gas industry - which has seen sharp price drops all year - even falling below zero earlier in the pandemic.

In the face of the last European lockdown restrictions in November, the price of oil fell by 4%.

Analysts have been predicting that prices should return to normal for the last few months, particularly once news of viable vaccine started circulating.

However, the pandemic has highlighted fossil fuels' unsustainable future, leading to many nations adopting more renewable platforms in their post-pandemic recovery schemes.

Mainland China saw its biggest daily increase in virus infections in more than five months, authorities said on Monday, following a spike in cases Hebei.

The city of Shijiazhuang, which lies at the centre of the new outbreak, is currently under quarantine, with strict travel restrictions in place.

Much of Europe is now under strict restrictions, with countries such as the UK entering into national lockdowns last week in order to stem a rise in cases.

Price drops have been cushioned following Saudi Arabia's pledge for a voluntary oil output cut of roughly 1 million barrels per day for February and March in an attempt to get OPEC+ producers to hold steady during the pandemic.

Saudi Arabia has also started investing in carbon-neutral projects in a mid to reduce its carbon footprint and diversify its economy as it currently stands as the world's largest oil provider.

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