Oil slips as concerns of demand recovery outweigh record cuts

Oil prices fell on Monday as fears that a second coronavirus wave could delay the recovery for fuel demand and outweigh the record output cuts.

Brent crude slid 0.2%, or 10 cents, at $24.04 per barrel. U.S. crude dropped 0.3%, or 11 cents, at $39.72 per barrel.

Both benchmarks increased 9% last week.

In the United States and Canada, operating oil and natural gas rigs fell to a record low the previous week. This came despite the rise in oil prices that urged producers to start drilling again.

OPEC and its allies including Russia are still deciding on the extension of the record 9.7-million-bpd output cut for the fourth month in August. Meanwhile, major producers Iraq and Kazakhstan assured their commitment to the production cuts to the OPEC+  panel last week.

Oil prices have also been underpinned by a recovery in fuel demand as countries worldwide ease lockdowns.

However, the World Health Organization posted a record rise in global cases on Sunday, with the highest in North and South America.