Global crude oil prices fall amid rising COVID-19 cases

RSTV Bureau
File photo of a deep sea oil rig.

File photo of a deep sea oil rig.

Representational PicGlobal crude oil prices fell on fears about the economic fallout from rising COVID-19 cases around the globe.

Crude prices also fell amid oversupply worries as OPEC and its allies are set to wind back output cuts in August.

In intra-day trade, Brent crude prices were trading around 43 dollars and 40 cents per barrel while WTI crude prices were around 40 dollars and 40 cents per barrel.

The slide comes after WTI rose 1.8% and Brent climbed 1.5% on Monday on better-than-expected data on manufacturing activity in Asia, Europe and the United States showing factories were emerging from the worst of the early coronavirus pandemic impact.

Denting fuel demand, cities from Manila to Melbourne are tightening lockdowns to battle new infections, while Norway has stopped cruise ship traffic in the latest European travel alarm.

Five analysts estimated, on average, that U.S. inventories of gasoline rose by 600,000 barrels. Distillate stockpiles, which include diesel and heating oil, likely grew by 800,000 barrels, while crude stocks fell by 3.3 million barrels in the week to July 31.

At the same time producers in the Organization of the Petroleum Exporting Countries (OPEC) and its allies, together known as OPEC+, are stepping up output this month, adding around 1.5 million barrels a day of supply. U.S. producers also plan to restart shut-in production and inventories remain near historical highs.