Oil prices drop as bleaker fuel demand outlook weighs on market | Reuters

Oil prices drop as bleaker fuel demand outlook weighs on market | Reuters:

Oil prices edged lower on Tuesday as worries over a slow recovery in global fuel demand, depressed by the coronavirus pandemic, chimed with bleak outlook warnings by major oil producers.

Brent crude LCOc1 was down 4 cents, or 0.1%, at $39.57 a barrel by 0642 GMT, while U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 2 cents, or 0.1%, at $37.24 a barrel. Both contracts ended slightly lower the previous day.

Still, losses were limited by short-covering ahead of a key meeting later this week of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to discuss compliance with their programme of ambitious output cuts to prop up prices.

“Sentiment in oil markets remained gloomy due to the bleak demand outlook by oil producers and as a resurgence in COVID-19 cases in many countries fuelled concerns over slower pick-up in global fuel demand,” said Chiyoki Chen, chief analyst at Sun