Oil prices fell on Tuesday due to oversupply to the fore after rumers spread that OPEC+ delayed talks on production policy for 2021. Cuts may be extended as the Coronavirus pandemic continues to undermine fuel demand.
Brent crude was down 26 cents, or 0.5% at $47.62 a barrel. That after it dropped more than 1 % on Monday. US West Texas Intermediate crude dropped 23 cents, or 0.5 %, to $ 45.11 a barrel, after dropping 0.4 % in the previous session.
The two contracts surged around 27% in November after developments of a Covid-19 vaccine raised hopes for an economic recovery that could boost fuel demand.
OPEC + postponed talks on production policy for next year until Thursday, according to Reuters.
The group is set to ease the current production cuts of 2 million barrels per day from January. But as demand continues to come under pressure from the pandemic, sources say OPEC + is considering extending existing cuts to the first months of next year.
The grouping, including the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, had been scheduled to hold its meeting on Tuesday after discussions of key ministers on Sunday failed to reach a consensus.
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