Oil prices advanced modestly on Tuesday as traders remained cautious amid rising coronavirus cases in the United States and worldwide.
The West Texas Intermediate (WTI) for August delivery gained 19 cents to settle at 40.29 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery was up 18 cents to close at 42.90 dollars a barrel on the London ICE Futures Exchange.
"Sentiment on the oil market continues to fluctuate between relief at the good production discipline shown by OPEC+ and fear of the consequences of coronavirus for demand," Eugen Weinberg, energy analyst at Commerzbank Research, said in a note Tuesday.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, agreed to extend the historic 9.7 million barrels per day production cut till the end of July, in order to tackle a supply glut amid the coronavirus crisis.
Traders were awaiting the next move from OPEC+ amid COVID-19 uncertainty as the group's Joint Ministerial Monitoring Committee is set to meet Wednesday.
In a monthly report released Tuesday, OPEC said global oil demand is expected to contract by 8.9 million barrels a day in 2020, compared with a June forecast for a fall of around 9 million barrels a day, warning of lingering risks from the pandemic.
Editor:Cherie
