Oil Prices Dip On Virus Worries
Oil prices fell on Tuesday as surging coronavirus cases around the world threatened to jeopardize a recovery in fuel demand.
The downside, however, was limited after reports of high compliance with production cuts from members of the OPEC+ producer group.
Benchmark Brent crude fell 15 cents, or 0.3 percent, to $45.22 a barrel, after having gained 1.3 percent on Monday.
U.S. crude futures were down 17 cents, or 0.4 percent, at $42.72 after a 2.1 percent gain in the previous session.
Fresh geopolitical concerns and a spike in coronavirus infections in economies newly emerging from weeks of lockdown have added to the downside risks to the oil demand outlook.
Supply is also on the rise, with markets already pricing in the Opec+ supply cuts and adjustments outside of Opec+.
The OPEC+ coalition saw its compliance rate with the oil production cuts at 95 percent in July, which is a level similar to the previous month, Reuters said citing sources.
A ministerial OPEC+ monitoring committee is meeting on Wednesday to review the oil market and compliance with the global oil supply reduction pact.
Russian Energy Minister Alexander Novak will join the video meeting despite testing positive for Covid-19, the country’s energy ministry said.