Oil Prices Edge Higher In Cautious Trade
Oil prices rose slightly in cautious trade on Thursday after suffering heavy losses the previous day on concerns over a drop in energy demand as global Covid-19 cases continue to climb.
Benchmark Brent crude for December delivery rose half a percent to $41.96 a barrel on expectations that OPEC and its allies will delay plans to restore 2 million barrels of halted output at the start of next year. U.S. West Texas Intermediate (WTI) crude futures were up half a percent at $40.23.
The demand recovery has slowed due to multiple outbreaks of the coronavirus, but it hasn’t stopped altogether, Russian Energy Minister Alexander Novak said in his opening remarks to Opec+ Joint Ministerial Monitoring Committee earlier this week.
The market is seriously grappling with demand in the wake of a continued rise in Covid-19 cases across Europe and North America.
There is an increasing evidence that the pandemic is starting to worsen. Germany joined Italy in reporting another record gain in coronavirus infections, while Spain and France are now the first nations in Western Europe with 1 million cases.
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