EghtesadOnline: Oil prices fell on Monday on oversupply concerns as OPEC and its allies wind back production cuts in August and a rise in worldwide Covid-19 cases points to a slower pick-up in fuel demand.
Brent crude futures slid 26 cents, or 0.6%, to $43.26 a barrel. US West Texas Intermediate crude futures were down 29 cents, or 0.7%, at $39.98 a barrel, CNBC reported.
Brent posted a fourth month of gains in July and US crude posted a third as both rose from depths hit in April, when much of the world was in lockdown due to the coronavirus pandemic.
“Investors are worried about oversupply as the OPEC+ is due to start reducing production cuts this month and a recovery in oil prices from record lows is likely to encourage US shale producers to ramp up output,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
“Also, fears over a resurgence in the coronavirus cases are weighing on oil markets,” he said.
Oil output by the Organization of the Petroleum Exporting Countries rose by over 1 million barrels a day in July as Saudi Arabia and other Persian Gulf Arab members ended their voluntary extra supply curbs on top of an OPEC-led deal.
Russia’s oil output in July was unchanged from June levels, the nation’s Energy Ministry said on Sunday.