Oil slides as rising coronavirus cases stirs demand worries

Oil prices fell on Wednesday on fears that fuel demand will continue to decline as rising COVID-19 cases in the United States and Europe could stall economic growth.

OPEC expects oil demand to increase by 6.54 million bpd to 96.84 million bpd in 2021, 80,000 bpd less than initially forecasted.

Brent crude futures for December contract slid 0.3%, or 12 cents, at $42.33 per barrel. U.S. West Texas Intermediate futures fell 0.3%, or 11 cents, at $40.09 per barrel.

OPEC and its allies including Russia will commit to slashing oil production cuts from January, according to UAE’s energy minister. 

Meanwhile, U.S. Gulf oil production continued to recover four days after Hurricane Delta shut nearly half of the region’s daily output.

U.S. crude stocks fell last week, while distillate inventories are expected to drop for the fourth week.