The new volatility and demand concerns in coronavirus cases changed the oil prices very little on Tuesday.
Brent crude LCOc1 futures settled at $43.08 a barrel, down 2 cents in the session. West Texas Intermediate CLc1 settled down 1 cent at $40.62 a barrel.
According to analysts, global oil demand continues to recover faster than expected, and global liquid fuel consumption decreased by an average of 16.3 million bpd in the second quarter compared to the previous year. It is predicted that global oil demand may recover at the end of 2021 and could be 101.1 million barrels (bpd) per day in the fourth quarter of next year.
Oil prices rose in May, but 16 US states reported record increases for the first five days of July in new COVID-19 cases. Florida imposes some limitations on economic reopening. California and Texas also report high infection rates.
In other parts of the world, such as Australia, revival of infections has occurred.
Saudi Arabia raised August’s official prices for crude oil on Monday as a sign of a recovery in demand. The application regarding supply cuts that will continue until the end of July creates financial pressure on refineries and this price difference is not at a level to meet the refineries’ margin expectations.