Shafaq News/ Oil edged lower near $40 a barrel in New York as OPEC and allied producers started supplying cruder to a global market where many countries are still struggling to contain the coronavirus.
OPEC+ will pump about 1.5 million barrels more this month than in July as it starts to unwind its historic virus-driven output curbs, with Russia already having lifted its output slightly last month.
The increase in supply comes as virus cases accelerated in California, a lockdown is being reimposed in Manila, and Australia’s second-biggest city instituted a curfew to stem the spread.
Oil has rebounded from a plunge below zero in April, but the rally has stalled near $40 a barrel with rising infections raising concerns about the sustained recovery in consumption.
West Texas Intermediate for September delivery fell 0.2% to $40.07 a barrel on the New York Mercantile Exchange as of 5 a.m. GMT.
Brent for October settlement slipped 0.13% to $43.39 a barrel on the ICE Futures Europe exchange after adding 0.6% on Friday
It’s a precarious time for producers to be adding more supply to the market, with Royal Dutch Shell Plc. and Exxon Mobil Corp. predicting there may not be a full demand recovery until next year.