Oil prices slip amid surging COVID-19 cases

Oil prices slipped on Tuesday as fears over a second wave of COVID-19 cases hurt an already-dwindling demand. However, hopes on output cuts extending limited the price drop.

Brent crude fell by 0.4% (¢14) to $39.58 per barrel at 0027 GMT after it had gained 2.6% during the start of the week. Meanwhile, U.S. oil lost 0.7% (¢24) TO #36.88 per barrel, having last traded 2.4% higher in the previous session.

COVID-19 cases surged over 8 million worldwide on Monday with a majority coming from Latin America. The United States and China also reported new outbreaks after recently re-opening their economies.

Oil prices rose on Monday on the back of renewed optimism after the U.A.E.’s energy minister said that OPEC+ producers that have not fully complied with the output cuts will have to make extra cuts later. He added that there were signals of a recovering demand for oil as lockdowns loosened around the world.

The OPEC group and its allies have agreed to extend output cuts of 9.7 million barrels per day till the end of July.