MELBOURNE (Reuters – Prices fell in the early trading on Monday, extending huge losses on Friday. This was after Japan stated on Saturday that it would consider releasing its oil reserves to lower prices.

However, as Europe’s COVID-19 case numbers rise in Europe, the demand for these products is increasing.

U.S. West Texas Intermediate oil futures dropped 65 cents (0.9%) to $75.25/barrel at 2327 GMT. This was after falling as low as $74.76, their lowest level since Oct 1.

WTI prices and WTI fell around 3% Friday.

Fumio Kishida, the Japanese Prime Minister, indicated that he is ready to counter rising oil prices after being asked by the United States for oil from their emerging stockpile.

Japanese laws allow only the taping of reserves in cases where there is a shortage or an occurrence that could cause a natural catastrophe.

Kishida stated that they are considering legal options based on the assumption that Japan would coordinate with other concerned countries.

Concerns are mounting that the renewed COVID-19 restrictions could have a negative impact on demand. Germany threatened Friday to move into a complete lockdown following Austria’s declaration that they would tighten their measures to deal with rising infections.