Oil prices were up on Tuesday with renewed confidence in OPEC production cuts, but the possibility of a second coronavirus (COVID-19) wave continues to keep the outlook for global oil demand low.
International benchmark Brent crude was trading at $39.83 per barrel at 0633 GMT for a 0.3% gain after it closed Monday at $39.72 a barrel.
American benchmark West Texas Intermediate (WTI) was at $37.26 a barrel at the same time for a 0.4% increase after ending the previous day at $37.12 per barrel.
OPEC member United Arab Emirates on Monday pointed out that some OPEC+ countries that produced more than their quotas in May have agreed to meet their compliance levels, adding that global oil demand has also begun to recover.
OPEC and non-OPEC oil-producing nations agreed on June 6 that member countries that produced more crude than their allowed quotas in May and June would lower their output in July, August and September. OPEC members Iraq and Nigeria said they would comply with the new agreement.
On the demand side, the price of Brent crude fell below the critical level of $40 per barrel last week with worries over the rise in new COVID-19 cases in the US and China, triggering fears that a second wave of an outbreak would weaken overall oil consumption worldwide.
(Anadolu Agency, June 16, 2020)
