Markets

Oil Falls As Virus Cases Surge

(RTTNews) - Oil prices fell over 1 percent on Tuesday as rising coronavirus cases in many countries cast a shadow over a pickup in fuel demand.

Besides, investors remain concerned about oversupply weighing on prices. It is expected that a recovery in oil prices from record lows will encourage U.S. shale producers to ramp up output.

Benchmark Brent crude fell 63 cents, or 1.4 percent, to $43.52 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 60 cents, or 1.5 percent, at $40.41 a barrel.

The overall number of global coronavirus cases has topped 18.1 million mark, while the deaths have increased to over 691,000, according to the Johns Hopkins University as of Tuesday morning.

As countries race to find a vaccine for Covid-19, the World Health Organization warned that there might never be a "silver bullet" for the new coronavirus.

With infection rates starting to rise, tougher lockdown restrictions have been enforced in parts of Northern England.

The Philippines said it will reimpose a stricter lockdown in the capital, Manila, and nearby provinces, with restrictions expected to remain till August 18.

Mayor of Greater Manchester Andy Burnham warned the "R Rate" in the North West may be above one, meaning the infection is spreading.

Amid renewed concerns about ongoing demand distress, investors await inventory data from the American Petroleum Institute and the U.S. Energy Information Administration for further direction.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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