* Brent, WTI down more than $1
* COVID-19 cases rise in India and Japan
* Market eyes an OPEC+ meeting this week
(Updates prices, adds quote, graphic)
By Bozorgmehr Sharafedin
LONDON, April 26 (Reuters) - Oil prices fell $1 on Monday on
fears that surging COVID-19 cases in India will dent fuel demand
in the world's third-biggest oil importer, while an expected
supply increase from OPEC+ also added to pressure.
Brent crude dropped $1.19, or 1.8%, to $64.92 a
barrel by 1014 GMT. U.S. West Texas Intermediate (WTI) crude
was down $1.08, or 1.7%, at $61.06 a barrel.
Both benchmarks fell about 1% last week.
"The market is tending to focus more on the bad news from
India and Japan at present, where the number of new coronavirus
cases has risen sharply, prompting increased mobility
restrictions to be imposed," said Commerzbank analyst Eugen
Weinberg.
India and Japan are the world’s third and fourth biggest
crude oil importers.
India's new coronavirus infections hit a record peak for a
fifth day on Monday as countries including Britain, Germany and
the United States pledged to send urgent medical aid to help
battle the crisis overwhelming Indian hospitals.
Consultancy FGE expects gasoline demand in India to drop by
100,000 barrels per day (bpd) in April and by more than 170,000
bpd in May. India's total gasoline sales came to nearly 747,000
bpd in March.
Diesel demand, which at about 1.75 million bpd accounts for
about 40% of refined fuel sales in India, may slump by 220,000
bpd in April and by another 400,000 bpd in May, FGE says.
In Japan, a third state of emergency in Tokyo, Osaka and two
other prefectures began on Sunday, affecting nearly a quarter of
the population as the country attempts to combat a surge in
cases of COVID-19.
"It is not clear whether India’s surging cases will be
enough to prompt the (OPEC+) group into action (to halt a
gradual easing of output restrictions), but the latest increases
in cases, particularly in the Asia-Pacific region, are a cause
for concern," said StoneX analyst Kevin Solomon.
The Organization of the Petroleum Exporting Countries and
allies led by Russia, known as OPEC+, will discuss output policy
at a meeting this week.
The group agreed at a meeting at the start of April to ease
production curbs by 350,000 barrels per day (bpd) in May,
another 350,000 bpd in June and a further 400,000 bpd or so in
July.
"The looming wave of fresh OPEC+ supply coupled with renewed
demand concerns has dented hopes for a meaningful summer price
pounce," said Stephen Brennock of oil broker PVM.
(Reporting by Bozorgmehr Sharafedin in London, additional
reporting by Yuka Obayashi in Tokyo; Editing by Kirsten Donovan
and Susan Fenton)