Oil down as Covid-19 pandemic worsens worldwide

Oil was down on Monday morning in Asia, as investors continue to be spooked by the ever-increasing number of global Covid-19 cases.

Brent oil futures slid 0.67% to $42.83 by 9:49 PM ET (2:49 AM GMT) and WTI futures  dropped 0.66% to $40.48.

There are almost 14.5 million cases, with over 600,000 deaths, according to John Hopkins University data. The US, one of the largest oil consumers in the world, continues to report record number of cases. Florida’s outbreak was described as “totally out of control,” according to a Democratic representative, and Los Angeles mayor Eric Garcetti said the city is “on the brink” of new restrictions.

Decreasing demand for the black liquid as Covid-19 numbers continue to rise are triggering renewed fears of an oversupply, with <a href=’https://staging.theenergyyear.com/companies-institutions/opec/’>OPEC+ production cuts set to ease at the end of July. The organization agreed to cut production by 9.7 million barrels per day (bpd) in April, but announced that the cuts would be eased to 7.7 million bpd from August to December.

Meanwhile, Russia is expected to keep August oil export levels at historical lows, with the extra supply expected to be pumped domestically. Russian Deputy Minister Pavel Sorokin said on Friday that the government will hold talks with producers to discuss the domestic fuel market, and could lift a ban on oil product imports.

By Investing.com: https://www.investing.com/news/coronavirus/oil-down-as-covid19-pandemic-worsens-worldwide-2233561