WTI crude futures traded lower at $41.0 per barrel on Tuesday, as investors fear that a fresh wave of COVID-19 infections around the world could hamper the global economic recovery and fuel demand.
Already, cities from Manila to Melbourne have announced a reversal of the latest reopening efforts to combat the virus spreading.
At the same time, oversupply concerns mounted as OPEC and its allies are due to start reducing production cuts this month while US shale producers are seen boosting output in coming weeks due to a recovery in oil prices.
On Monday, WTI crude futures jumped 1.8% on the back of news that Eli Lilly’s coronavirus antibody drug entered a phase 3 trial and stronger-than-expected manufacturing data in the US, some parts of Europe and Asia.
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