Oil prices fell on Wednesday, amid concerns about how long the supply tightness would last.
Saudi Arabia, the world’s biggest exporter, is unilaterally reducing supply in February and March, on top of cuts agreed by other members of the OPEC and its allies.
Sentiment was also rattled by reports that a global trend of decarbonization and work-from-home may continue to weigh on fuel demand.
Oil prices have rallied since November, hitting their highest in 13 months in the previous session, amid hopes for smooth COVID-19 vaccinations globally and expectations for large US stimulus plans to boost economic activity.
Traders now await US weekly inventory report from the EIA later in the day. On Tuesday, the API data showed the US crude inventories declined for the third straight week. At around 07:00 AM GMT, WTI crude fell 0.4% to $58.15 a barrel, while Brent oil dropped 0.3% to $60.93 a barrel.