By Gina Lee

Investing.com – Oil was down Monday morning in Asia as Japan contemplated releasing supply from its reserves. There are concerns over fuel demand as the number of European COVID-19 cases is on the rise.

The price of $78.75 fell 0.18% by 11:37 ET (or 4:37 GMT), and the value of $75.90 dropped 0.0%. Brent futures and WTI futures fell below $70.

Austria is in full lockdown because of the high number of European cases.

“Germany is poised to agree on mandatory remote working. The Netherlands and Ireland have instructed people to work at home whenever it is possible. “This is in the midst of the possibility of oil being released from strategic reserves China or the U.S.” ANZ analysts stated in a note.

Joe Biden was faced with increasing pressure to lower gasoline prices and release oil supply from Strategic Petroleum Reserve (SPR). He requested that oil majors from China and Japan join him in an oil release from SPR.

Fumio Kishida (Japan’s Prime Minister) said on Saturday that he would follow U.S. orders.  “We’re proceeding with consideration as to what we can do legally on the premise that Japan will coordinate with the United States and other countries concerned,” Kishida told the media.

Although oil reached its highest point since 2014, it has fluctuated over the last month despite the fact that the Organization of the Petroleum Exporting Countries (OPEC+), continues to stick with its plan for supply increases in stages at its last meeting.

Investors also monitor reports that an Iranian-backed Houthi rebel group in Yemen claimed it had detected signs of danger for navigation and trade across the Red Sea.