Oil prices fell more than 2% on Tuesday on worries that new clampdowns on businesses to stem surging U.S. coronavirus cases could threaten fuel demand recovery and expectations that OPEC+ might ease output cuts from August in an upcoming meeting.
U.S. West Texas Intermediate (WTI) crude CLc1 futures slid 96 cents, or 2.39%, to $39.14 a barrel by 0443 GMT, while Brent crude LCOc1 futures fell 88 cents, or 2.06% to $41.84, as reported by Reuters.
Both benchmark contracts lost just over 1% on Monday.
The market will be watching the next move from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, whose Joint Ministerial Monitoring Committee will meet on Wednesday to recommend the next level of cuts.
Under the existing agreement, OPEC+ is set to taper its record supply cut of 9.7 million barrels per day (bpd) to 7.7 million bpd from August through December.