Oil slides on rising COVID-19 cases, hopes for stock draw caps losses

Oil prices fell on Tuesday as traders worried about rising global coronavirus cases, but hopes for a drop in U.S. crude oil stocks for a fifth consecutive week capped losses.

Brent crude oil futures fell 0.2%, or 10 cents, at $55.56 per barrel. U.S. West Texas Intermediate dropped 0.2%, or 8 cents, at $52.17 per barrel.

Global COVID-19 cases hit 90 million on Monday as countries worldwide scramble to secure vaccines and extend lockdowns to contain new coronavirus variants. 

President-elect Joe Biden, with his Democratic party winning control of both Houses, has promised “trillions” in additional pandemic-relief spending.

U.S. crude oil stocks likely dropped for a fifth consecutive week, while refined products inventories were up last week.

Brent could climb to $65 per barrel by summer 2021, boosted by Saudi’s pledge to output cuts and implications of a power shift to the Democrats in the United States.