Brent, WTI Prices Drop Amid Supply Glut

Brent, WTI Prices Drop Amid Supply GlutBrent, WTI Prices Drop Amid Supply Glut

Oil prices fell on Monday as concern over a persistent glut and economic gloom caused by the coronavirus pandemic combined to cancel out support from supply cuts at some of the world’s top producers.
Brent crude futures were down 29 cents, or 0.9%, at $30.68 a barrel, while US West Texas Intermediate crude futures fell 17 cents, or 0.7%, to $24.57 a barrel, CNBC reported.
Both benchmarks have notched up gains over the past two weeks as countries have eased business and social lockdowns imposed to cope with the coronavirus and fuel demand has rebounded modestly. 
Oil production worldwide is also declining. 
But possible signs of a second wave of coronavirus infections in northeast China and South Korea worried investors even as more countries started to pivot towards easing pandemic restrictions in moves that could support oil demand.
Goldman Sachs analysts said there was still concern that demand will stay weak in 2021, with worries about a second wave of Covid-19 cases and only a modest increase in personal or corporate travel.
Global oil demand has plummeted by about 30% as the pandemic curtailed movement across the world, building up inventories globally.

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