On Thursday, oil prices fell in the early trade as the new coronavirus cases surge and cast a glum outlook on oil demand.
At 00.35 GMT, Brent crude oil futures stepped down by 1.1% or 45 cents to USD40.26/barrel while US WTI futures slipped by 1.6% or 60 cents to USD37.36/barrel. In the previous session, both benchmarks lost 25 cents and 42 cents respectively.
China has resulted to cancel flights and close schools due to the rising new numbers of coronavirus infections. Several US states also posted steep surges in new cases.
The sentiment was even more weighed down by the climb in the US crude inventories, which hit a record high for a second straight week even when the stockpiles for gasoline and distillate dipped.
Analyst Lachlan Shaw of the National Australia Bank commented that the output cut pact from the Organization of the Petroleum Exporting Countries and its non-member oil producer allies (OPEC+) cushioned the recent falls.
Shaw added that oil prices would likely go to be up and down but still staying in the range of USD35-40/barrel that they have been trading in so far this month. The production cut balanced out the volatile demand.
