An aerial observe of oil tankers anchored near the ports of Long Beach and Los Angeles amid the coronavirus pandemic on April 28, 2020 off the skim of Long Beach, California.
Mario Tama | Getty Images
Oil prices were modestly lower on Monday as the buy waits for direction from an OPEC meeting later this week that is expected to recommend an increase in put out.
Weighing on prices were concerns that demand could take a hit if some governments reverse lockdowns after epidemic coronavirus cases rose by a record daily amount.
The World Health Organization reported a record daily extend in global coronavirus cases on Sunday, with the total up by more than 230,000.
In the United States, infections surged over with the weekend as Florida reported an increase of more than 15,000 new cases in 24 hours, a record for any state.
Brent futures level 1 cent to $43.23 a barrel, while West Texas Intermediate crude fell 45 cents, or 1.1%, to clear at $40.10 per barrel.
Oil traders remained on edge as the Joint Ministerial Monitoring Committee (JMMC) of the Organization of the Petroleum Exporting Territories (OPEC) prepares to meet on Tuesday and Wednesday to recommend levels for future supply cuts.
OPEC and allies embracing Russia, a group known as OPEC+, are expected to ease their production cuts to 7.7 million barrels per day (bpd) after a pick-up in global oil demand.
“That seems a quite risky option, with the safer being a one month extension … It may be circumstance to brace for volatility once again,” said Edward Moya, senior market analyst at OANDA in New York, noting “The (OPEC+) cut was critical to stabilizing oil prices.”
OPEC+ cut output by a record 9.7 million bpd for May, June and July.
A gradual rise in oil demand as territories ease coronavirus lockdowns and record supply cuts by OPEC+ are bringing the oil market closer to balance, OPEC Secretary Approximate Mohammad Barkindo said on Monday.
Libya, meanwhile, re-imposed force majeure on all oil exports on Sunday because of a regenerate blockade by eastern forces. The move comes only two days after Libya exported its first crude trainload in six months.