Another hit to oil prices

Oil prices fell for the fourth day in a row, Tuesday, on fears of a surge in coronavirus cases around the world, negatively impacting the recovery in fuel demand, and this comes amid fears. of an increase in Libyan supply in the market.

Brent crude futures were down 30 cents, or 0.7 percent, at $ 42.32 a barrel at 0149 GMT, after falling 31 cents on Monday.

US West Texas Intermediate crude futures fell 26 cents, or 0.6 percent, to $ 40.57 a barrel after losing five cents on Monday.

This coincided with the increase in the total number of HIV infections worldwide to more than 40 million, with the increase in cases in Europe and North America.

Oil market analyst Rystad Energy said that since April, the market has witnessed a significant increase in demand for oil, reaching about 92 percent of pre-epidemic levels.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies pledged to support the oil market as concerns mounted about the spread of infections.

For the moment, the organization is committed to curbing production by 7.7 million barrels per day, until December, and the level of reduction is expected to reach 5.8 million barrels per day in January, which means a supply increase.

Three sources from the group’s countries told Reuters that the planned increase in production from January was “reversible” if necessary.

“We do not believe that oil markets are in a position to absorb about 2 percent of world supplies, which OPEC is expected to resume on January 1,” said Vivek Dar, a commodities analyst at Commonwealth Bank.

He said rising production from Libya, which operates outside of the “OPEC + deal,” raises supply concerns.

Libya is working to increase production rapidly, after the armed conflict shut down almost all of the country’s production last January.