Oil prices drop for 4th day

Oil prices drop for 4th day

Oil prices slipped for a fourth straight day on Tuesday on worries about a resurgence of coronavirus cases globally stifling a promising recovery in fuel demand, while growing output from Libya adds to plentiful supply in the market.

Brent crude futures fell 30 cents, or 0.7%, to $42.32 a barrel by 0149 GMT, after falling 31 cents on Monday. The US WTI crude futures slid 26 cents, or 0.6%, 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 having sparked new clampdowns.
“Since April we have seen a miraculous recovery in oil demand – which is now at about 92% of pre-pandemic levels, but it’s too early to declare an end to the COVID-19 oil demand destruction era,” said Rystad Energy oil markets analyst Louise Dickson.

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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 5.7 million bpd in January.
Three sources from producing countries said the planned output increase from January could be reversed if necessary.
-REUTERS

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