Oil Prices Down to $42.95 a barrel as US confirms more COVID-19 cases

The Oil prices witnessed a decrease of 0.3% to $42.95 a barrel, in early trade on the third day of the business week.

The decrease is due to the concerns that the United States of America, which is the biggest oil consumer will limit the use, as the country witnessed the surge in novel coronavirus cases.

Brent crude futures fell 13 cents, or 0.3%, to $42.95 a barrel.

U.S. West Texas Intermediate (WTI) crude futures dropped 10 cents, or 0.3%, to $40.52 a barrel.

The U.S. Energy Information Administration’s (EIA) said on U.S. crude oil production expected to fall by 600,000 barrels per day (bpd) in 2020, a smaller decline than the 670,000 bpd it forecast previously.

With 16 US states reporting record increases in new COVID-19 case in the first five days of July, there is mounting concern that public health measures to limit the virus spread will curb fuel demand.

Key ministers of the OPEC+ are due to hold talks next week.

On the other hand, the number of confirmed coronavirus cases in the United States pushed past 3 million.

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California, Hawaii, Idaho, Missouri, Montana, Oklahoma and Texas shattered their previous daily record highs for new cases.

The biggest jumps occurred in Texas and California, the two largest US. states, with more than 10,000 each.

About 24 states have reported disturbingly high infection rates as a percentage of diagnostic tests conducted over the past week.

In Houston, a line of more than 200 cars qued around the United Memorial Medical Center as people waited hours in scorching heat to get tested.

Some had arrived the night before to secure a place in line at the drive-through site.