Oil prices are declining today, losing yesterday's gains as a global spike in COVID-19 cases reinforces concerns about economic growth and the recovery of fuel demand.
Several European countries are currently implementing curfews and renewed lockdowns. India - in route to overtaking the US as the country with the most COVID-19 cases - is preparing for a second wave in the coming weeks as it heads toward its main holiday season. It is worth noting that India is the third-largest consumer of oil in the world.
Brent crude futures are down to $42.18 a barrel at the time of writing, while WTI crude futures are down to $40.29.
Yesterday, the International Energy Agency (IEA) said that a second wave COVID-19 may complicate producers' efforts to balance the market.
Crude oil achieved some gains yesterday following a report from the American Petroleum Institute showing a decline in US crude inventories last week. The US Energy Information Administration is scheduled to release its data on oil inventories today.
Meanwhile, OPEC+ has reported ahead of its technical committee meeting today that it complied with its agreement to reduce oil supplies in September by 102%.
