Brent crude oil futures for December delivery stood at $42.94 a barrel, beneath 22 cents, or 0.5%, as of 0035 GMT, while December U.S. West Texas Intermediate (WTI) crude futures slipped 23 cents, or 0.7%, to $41.47 a barrel.
Both benchmarks increased the prior session.
Crude inventories increased by 584,000 barrels in the week to Oct. 16 to about 490.6 million barrels. Data from industry group the American Petroleum Institute pointed that analysts’ expectations in a Reuters survey for a draw of 1 million barrels were matched with analysts’ expectations.
Covid-19 cases passed 40 million
Joining to the pressure, global coronavirus cases passed 40 million on Tuesday, with some areas of Europe forcing renewed lockdown measures
Satoru Yoshida, a commodity analyst with Rakuten Securities Higher U.S. inventory, declared that stoked difficulty of oversupply at a moment when the COVID-19 cases are progressing all over the world, which could delay improvement in fuel demand.
On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) and its associates, collectively acknowledged as OPEC+, intend on climbing back their production cuts in January from a prevailing 7.7 million barrels per day (BPD) to approximately 5.7 million BPD in January.
OPEC affiliate Libya, which is free from the cuts, is also ramping up production after armed conflict shut nearly all of the country’s output in January, drawing more oil into an oversupplied market.
However, on Tuesday, Russia’s energy minister told it was too early to consider the future of global oil production curbs ahead of December, less than a week after announcing plans to decrease the output restrictions should proceed.
Satoru Yoshida, a commodity analyst with Rakuten Securities, predicts economic incentives in the United States and other countries to fight an epidemic-led slump in expenditure is anticipated to cap damages. Nevertheless, the intended decrease in output cuts by OPEC+ would also restrict any future gains.
The White House and Democrats in the U.S. Congress went closer to the arrangement on a new COVID-19 relief package on Tuesday. The U.S. president Donald Trump claimed he was prepared to allow a generous aid bill notwithstanding opposition from his own Republican Party.