Oil prices slipped on Tuesday as concerns over surging coronavirus cases around the world and political uncertainty ahead of the U.S. election offset hopes that major producers would hold back from ramping up output.
Brent crude futures slipped 16 cents, or 0.4 to 38.81 a barrel at 0757 GMT, while U.S. West Texas Intermediate WTI crude futures were down 9 cents, or 0.2, to 36.72 a barrel. Both benchmarks gained nearly 3 on Monday.
In Asia, oil has given back some of those outsized overnight gains… However, the pullback is modest versus the scale of the rally overnight, said Jeffrey Halley, senior market analyst, Asia Pacific, at OANDA in Singapore.
Although the technical picture suggests further gains ahead, the supplydemand picture tells a different story, particularly with Europe.
Italy is the latest country in Europe to tighten COVID19 restrictions, including limiting travel between the worsthit regions and imposing a nightly curfew, which will limit fuel demand.
Demand has hit a speed hump as the resurgence in coronavirus cases around the world has resulted in new lockdowns, ANZ Research said in a client note.
Benchmark prices, down sharply over the past week, had a brief reprieve on Monday, rising nearly 3 after Russias oil minister held talks with domestic oil companies to delay crude output increases planned for January.
The Kremlin has effectively stopped two gaps with one bush defend oil prices and effectively intervene in the roubles precipitous…