Oil falls on fears of glut as OPEC+ set to boost output

  • Monday 03, August 2020 11:18 AM
  • Oil falls on fears of glut as OPEC+ set to boost output
Sharjah24 - Reuters: Oil prices fell on Monday on oversupply worries as OPEC and its allies are set to wind back output cuts in August and a rise in worldwide COVID-19 cases points to a slower pick-up in demand.
Brent crude futures slid 27 cents, or 0.6%, to $43.25 a barrel by 0642 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 34 cents, or 0.8%, at $39.93.

Brent posted a fourth month of gains in July and U.S. crude posted a third as both rose from depths hit in April, when much of the world was in lockdown due to the coronavirus pandemic.

"Investors are worried about oversupply as OPEC+ is due to start reducing production cuts this month and a recovery in oil prices from record lows is likely to encourage U.S. shale producers to ramp up output," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

"Also, fears over a resurgence in the coronavirus cases are weighing on oil markets," he said.

Oil output by the Organisation of the Petroleum Exporting Countries rose by over 1 million barrels a day in July as Saudi Arabia and other Gulf members ended their voluntary ...