Oil prices fell modestly on Tuesday as soaring COVID-19 cases continued to stoke fears over weaker demand for the crude.
The West Texas Intermediate for August delivery slid 1 cent to settle at 40.62 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery lost 2 cents to close at 43.08 dollars a barrel on the London ICE Futures Exchange.
“Oil prices are continuing to tread water, with positive and negative factors virtually cancelling one another out,” Eugen Weinberg, energy analyst at Commerzbank Research, said in a note on Tuesday.
While the COVID-19 pandemic is weighing on the demand side, the supply cut by major crude producers is lending support for the prices, experts noted.
The Organization of the Petroleum Exporting Countries and its allies agreed to extend the historic 9.7 million barrels per day production cut till the end of July, in order to tackle a supply glut amid the coronavirus crisis. Enditem