Crude oil prices remain stable despite surge in global Covid-19 cases

Oil prices were little changed on Monday after falling earlier as a record daily rise in global coronavirus cases boosted concerns that demand could fall again, while a producer meeting this week was expected to recommend an increase in output.
 

The World Health Organization reported a record daily increase in global coronavirus cases on Sunday, with the total up by more than 230,000.
 

In the United States, infections surged over the weekend as Florida reported an increase of more than 15,000 new cases in 24 hours, a record for any state.
 

Brent futures remained unchanged at $43.24 a barrel by 11:23 a.m. EDT (1523 GMT), while U.S. West Texas Intermediate (WTI) crude rose 4 cents, or 0.1%, to $40.59.
 

"The energy patch is under pressure this morning from both sides of the supply/demand equation today," said Bob Yawger, director of energy futures at Mizuho in New York, noting "Increases in Covid-19 cases has dented the demand side, and (OPEC) appears determined to increase supply."

Oil traders also remained on edge as the Joint Ministerial Monitoring Committee (JMMC) of the Organization of the Petroleum Exporting Countries (OPEC) prepares to meet on Tuesday and Wednesday to recommend levels for future supply cuts.
 

OPEC and allies including Russia, a group known as OPEC+, are expected to ease their production cuts to 7.7 million barrels per day (bpd) after a recovery in global oil demand.
 

OPEC+ cut output by a record 9.7 million bpd for May, June and July.
 

A gradual rise in oil demand as countries ease coronavirus lockdowns and record supply cuts by OPEC+ are bringing the oil market closer to balance, OPEC Secretary General Mohammad Barkindo said on Monday.
 

Libya, meanwhile, re-imposed force majeure on all oil exports on Sunday because of a renewed blockade by eastern forces. The move comes only two days after Libya exported its first crude cargo in six months.