Crude oil

Oil Prices Drop as Virus Cases Hit 14mn Globally

Oil prices dropped on Monday, amid concerns that a fresh wave in COVID-19 cases in several US states and some places across the globe could slow recovery in fuel demand.

More than 14 million people have been infected by the virus globally and nearly 602,000 have died, according to a Reuters tally.

Meantime, Japan’s oil imports fell 14.7% yoy percent in June, official figures showed on Monday, after a 25% slump in May. Sentiment was muted over news that Saudi Arabia’s 84-year-old ruler, King Salman bin Abdulaziz, has been admitted to hospital in the capital Riyadh today for medical checkup.

On the supply side, OPEC+ have agreed to reduce their current crude oil production cut level to 7.7 million barrels per day starting from August, from the existing record 9.7 million bpd.

Around 03:00 AM GMT, WTI crude fell 0.6% to $40.35 a barrel, while Brent crude dropped by 0.5% to $42.91 a barrel.

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