Oil prices slid on Tuesday on lingering concerns over the threat to fuel demand from the resurgence of new coronavirus infections around the world, though hopes for further cuts in crude supplies stemmed losses.
Brent crude LCOc1 fell 20 cents, or 0.5%, at $39.52 a barrel by 0424 GMT, having gained 2.6% on Monday. U.S. oil CLc1 dropped 21 cents, or nearly 0.6%, to $36.91 a barrel, after closing 2.4% higher in the previous session, as reported by Reuters.
Coronavirus cases rose to more than 8 million worldwide by Monday, with infections surging in Latin America, while the United States and China are dealing with fresh outbreaks. But some observers said they didn't expect to see any return to the stringent lockdowns seen at the start of the year.
Hopes of more cuts in oil supplies by major producers also helped prevent steeper price drops, analysts said.
Prices rose on Monday after the United Arab Emirates' energy minister expressed confidence that OPEC+ producers - members of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia - that have not been in full compliance with previously agreed cuts would up their game.