Oil Down With Record Virus Cases, US-China Tension

Crude oil prices were down on Tuesday as a record number of new coronavirus (COVID-19) cases and rising Sino-American tensions continue to weaken the outlook of the global economy and oil demand.

International benchmark Brent crude was trading at $42.27 per barrel at 0650 GMT for a 1.05% decline after closing Monday at $42.72 a barrel.

American benchmark West Texas Intermediate (WTI) was at $39.59 a barrel at the same time for a 1.27% loss after ending the previous day at $40.10 per barrel.

The World Health Organization (WTO) said Monday that 230,000 cases of COVID-19 were reported to WHO on Sunday -- a single-day world record in the new number of cases. The previous global record came Friday with more than 228,000 new cases reported globally.

Rising COVID-19 cases continues to hamper a global economic recovery and an uptick in oil demand, stifling crude prices.

Rising tensions between the US and China are also negatively impacting global oil demand and crude prices.

China announced sanctions on Monday on several US lawmakers and an envoy over the issue of Uighur rights in Xinjiang.

On the supply side, representatives of OPEC and non-OPEC oil-producing nations will hold a two-day technical meeting on Tuesday and Wednesday.

The group known as OPEC+ will consider curbing its oil supply cut to 7.7 million barrels per day (bpd) from the ongoing level of 9.7 million bpd amid signs of rising global oil demand.

However, if weak global oil consumption continues amid the rise in new COVID-19 cases, any increase in OPEC+ output could easily cause a plummet in crude prices. -