Oil prices dip as investors expected oil supply easing at Wednesday’s OPEC meeting

Oil prices traded lower in Asia earlier on Monday, a few days before OPEC’s technical meeting scheduled on Wednesday. Investors are expecting that OPEC would further recommend the easing of its current supply cuts in a bid to reverse oil gains.

Brent futures dipped by 0.74%, selling at $42.92 per barrel at 11:58 PM ET (4:58 Am GMT). Meanwhile, WTI futures fell by 0.81% to $40.22 per barrel.

Oil prices previously rose by 2% on Friday after the International Energy Agency increased its 2020 oil demand by 400,000 barrels per day. However, the black liquid lost its gains from last week’s session as the COVID-19 pandemic worsened in countries such as the U.S., Brazil, and South Africa – some of the world’s largest consumers of oil.

Investors are also eyeing an upcoming crude oil supply estimate from the American Petroleum Institute (API) scheduled on Tuesday to evaluate the risk of an oversupply.