Crude Oil Futures Settle Modestly Higher
Crude oil futures ended slightly higher on Tuesday, with traders weighing global crude supply and demand positions and looking ahead to the outcome of the meeting of OPEC’s Joint Ministerial Monitoring Committee, scheduled to take place on Wednesday.
Surging coronavirus cases and fears of widespread lockdown have raised concerns about the energy demand outlook.
West Texas Intermediate Crude oil futures for August ended up $0.19 or about 0.5% at $40.29 a barrel.
Brent crude futures gained $0.18, or 0.42%, to settle at $42.90 per barrel.
According to a source from OPEC+, the group has delivered compliance of 107% with the agreed oil output reduction deal entered into in June. An OPEC meeting later this week is expected to recommend an increase in output.
The OPEC’s Joint Ministerial Monitoring Committee is set to taper its record supply cut of 9.7 million barrels per day (bpd) to 7.7 million bpd from August through December.
The American Petroleum Institute (API) is scheduled to come out with its weekly oil report later today. The Energy Information Administration (EIA) will release its inventory data for the week ended July 10 on Wednesday morning. The EIA is expected to report a more than 2 million barrel drop in U.S. crude inventory for the week.
On the coronavirus front, California on Monday banned indoor dining and shuttered movie theaters and bars as coronavirus infections spread beyond the Sun Belt.
Indoor religious services, gyms and hair and nail salons are again off-limits in most of the state to head off surging coronavirus cases and hospitalizations.
As global coronavirus infections surged past 13 million, the WHO warned that “the virus remains public enemy number one” and the pandemic could get far worse if countries around the world do not follow basic healthcare precautions.
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