Prices of oil fell dramatically on the third day of the business week, as the demand in United States, world’s largest oil consumer; dented after spike in coronavirus cases.

According to media reports, Brent crude fell 32 cents, or 0.7%, to $44 a barrel, and U.S. West Texas Intermediate (WTI) crude CLc1 dropped 33 cents, or 0.8%, to $41.59.

Oil prices climbed about $1 the previous day, reaching their highest since March 6.

Furthermore Southern Iraqi exports in the first 20 days of July averaged 2.70 million bpd.

Market Analysts said “Crude’s rally hit a brick wall after the API report showed a sharp rise in stockpiles and on President Trump’s warning that the coronavirus pandemic in the U.S. is likely to worsen,”

Although Oil prices rose on Tuesday on hopes for a COVID-19 vaccine and after European Union lenders agreed on ($859 billion) fund to prop up virus-hit economies.

There are also signs that Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), still not meeting its target under an OPEC-led supply cut deal.

Asian Markets

Asian Shares showed a mixed trend on start of the trading on Wednesday.