Oil prices remained stable on Tuesday as the OPEC + producer group’s high compliance with supply cuts offset fears of demand caused by coronavirus.
Brent crude futures LCOc1 rose 9 cents to settle at $45.46 a barrel. West Texas Intermediate (WTI) crude CLc1 futures ended unchanged at $42.89 a barrel.
A technical panel that supported prices on Tuesday stated that compliance with OPEC + oil production cuts in July was between 95% and 97%.
OPEC + will hold a ministerial level panel meeting on Wednesday. OPEC + is expected to continue to demand strict compliance from all members and to praise its members for the success of the measures to date.
Still, the coronavirus epidemic that has swept the world for months shows no sign of relief. In the United States alone, about 11.5 million people are said to have the disease and more than 400,000 people died as a result of the epidemic.
There are still ongoing concerns, about COVID-19 and a deal about the new stimulus package. The U.S. Congress has so far not agreed on another financial aid package to stop the economic repercussions of the epidemic.
Meanwhile, some European countries have renewed travel quarantines that affect the demand for jet and motor fuel.
U.S. crude oil and distillate stocks fell last week, gasoline stocks soared. Crude oil stocks fell 4.3 million barrels to nearly 512 million barrels, above analysts’ expectations of a 2.7 million barrel draw from the market.