SULAIMANI (ESTA) — Oil extended losses on Tuesday on worries a resurgence of coronavirus cases globally is stifling a promising recovery in fuel demand, while growing output from Libya adds to plentiful supply.
Brent crude LCOc1 futures fell 34 cents, or 0.8%, to $42.28 a barrel by 0547 GMT, after falling 31 cents on Monday.
U.S. West Texas Intermediate (WTI) crude CLc1 futures slid 26 cents, or 0.64%, to $40.57 a barrel, after losing 5 cents on Monday.
COVID-19 cases topped 40 million on Monday, according to a Reuters tally, with a growing second wave in Europe and North America sparking new clampdowns.
“It’s clouds of gloom over the oil market again,” said Vandana Hari, energy analyst at Vanda Insights, Reuters reported.
“The demand picture was already weak; the supply sentiment took a hit on Monday as Saudi Arabia and Russia steered clear of signaling that they would reconsider the planned OPEC+ January output boost,” said Hari.
A meeting on Monday of a ministerial panel of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, together called OPEC+, pledged to support the oil market as concerns grow over soaring infections.
For now OPEC+ is sticking with a deal to curb output by 7.7 million barrels per day (bpd) through December, and then shaving the cuts back to 5.8 million bpd in January.
However, three sources from producing countries said the planned output increase from January could be reversed if necessary.
