By Gina Lee
Investing.com – Oil was down on Tuesday morning in Asia, giving up some of its gains from the previous session over investor fears that the ever-increasing number of COVID-19 cases would impact demand.
There are now over 8 million cases globally as of June 16, according to Johns Hopkins University data, with China and the United States continuing to battle a second wave of new cases.
Brent oil futures fell 1.08% to $39.36 by 9:51 PM ET (2:51 AM GMT) and WTI futures slid 0.86% to $36.80.
But the black liquid’s losses were mitigated after UAE energy minister Suhail Mohamed Faraj Al Mazrouei expressed confidence on Monday that producers who have so far not been fully compliant with the production cuts agreed to by OPEC+ in April would pick up the pace. He also said that oil demand was increasing, with more countries easing lockdowns and restarting their economies.
"Renewed optimism that OPEC+ production cuts could remain in place if we see second wave concerns intensify have oil prices refusing to enter freefall," Edward Moya, senior market analyst at OANDA, told Reuters.
Investors are now focusing on Thursday’s OPEC-led monitoring panel to be led by OPEC as it analyzes producer countries’ success in complying with the cuts. Meanwhile, crude oil supply forecasts from the American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA), due later in the week, will also be scrutinized.