Oil prices plummet as economic worries offset tightening Reuters supplies

© Reuters. PHOTO FILE: An employee demonstrates a crude oil sample at the Yarakta Oil Field, owned by Irkutsk Oil Company (INK), in the Irkutsk Region, Russia in this illustrated figure taken on March 11, 2019. REUTERS / Vasily Fedosenko / Illustration / Photo file

By Florence Tan

SINGAPORE (Reuters) – The rough future is bleak on Monday, as concerns over a slowdown in global growth have outpaced the prospect of boosting supply after talks between key producers to raise production in the coming months they are stopped.

for September it fell 15 cents, or 0.2%, to $ 75.40 a barrel from 0411 GMT while US West Texas Intermediate crude for August was at $ 74.44 a barrel, down 12 cents, or 0, 2%.

The spread of coronavirus variants and unequal access to vaccines threaten the global economic recovery, the leaders of the major G20 economies warned on Saturday.

A Reuters report of new COVID-19 infections shows them growing in 69 countries, with the daily rate pointing to the other since the end of June and now reaching 478,000.

“We don’t see the impact but at this rate, it will hit demand sooner or later,” said a Singapore-based oil trader.

Oil prices fell last Tuesday after the Organization of the Petroleum Exporting Countries and its allies, a group called OPEC +, failed to reach an agreement to increase production since August. That is why the United Arab Emirates has rejected a proposed eight-month extension to OPEC + production boards.

“Prices will remain volatile as long as the impasse remains,” said Howie Lee, an economist at Singapore’s OCBC bank.

“On the surface, it looks like it should support prices, but it remains the risk that a complete breakdown will result in a not-so-different price war last year,” he said, but added that the likelihood of the latest event it was low.

The world’s largest oil exporter to Saudi Arabia met full contractual demand for crude oil from five buyers in August, but declined at least two requests for additional volumes.

Futures first-month WTI earnings posted their sixth weekly earnings last week following a bullish report from the U.S. Energy Information Administration that showed and gasoline stocks are falling as demand for gasoline has reached its maximum since 2019.

In response to higher oil prices, U.S. energy companies have added oil and rigs for a second week in a row, Baker Hughes data showed.

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