Oil prices plummeted on Tuesday as investors’ concerns about coronavirus cases escalating globally, but a fifth-week drop in crude oil inventory in the US kept losses under control.
Brent crude oil futures slipped 10 cents, or 0.2%, to $55.56 a barrel by 0500 GMT, while West Texas Intermediate (WTI) fell 8 cents, or 0.2%, to $52.17 a barrel.
Worldwide coronavirus cases exceeded 90 million on Monday; Countries around the world are scrambling to supply vaccines and continue to expand or relaunch lockdowns to fight new coronavirus variants.
In Asia, Japan plans to expand the state of emergency beyond its capital Tokyo to contain the spread of COVID-19, while China imposes travel restrictions in parts of the country.
The United States is pondering the possibility of increased economic recovery. The new president Biden continues his constructive rhetoric regarding the extra outbreak support.
Inventories of refined products increased last week, while US crude inventories likely fell for the fifth consecutive week, according to a preliminary survey conducted ahead of the Energy Information Administration’s (EIA) official report Wednesday.
Brent is said to rise to $ 65 a barrel by the summer of 2021 due to Saudi cuts and the consequences of the power change in the US, according to some analysts.