WTI crude futures fell to trade around $37.2 a barrel on Tuesday, hovering near multi-month lows amid mounting concerns over fuel demand recovery.
On Monday, OPEC said in its monthly report that world oil demand will decline by 9.46 million barrels per day this year, more than the previous month’s estimate of a 9.06 million bpd drop on the back of a weaker-than-expected recovery in India and other Asia countries.
Also, worries over an increase in global supply after Libyan commander Khalifa Haftar committed to ending a months-long blockade of oil facilities weighed on sentiment.
Putting a floor under prices were supply disruption in the US Gulf of Mexico as Tropical Storm Sally forced companies to evacuate rigs and halt production.
Investors will monitor OPEC+ meeting later this week, although markets don’t expect further reductions in the output.