A Build In U.S. Inventory and New Lockdown Fears Cause Oil To Dip – 7 July, 2020

A build in U.S. crude supply has caused oil prices to dip with the rapid the spread of coronavirus and reinforced lockdowns across the country. Brent crude futures shed 0.3% or 13 cents to $42.95 per barrel. U.S. West Texas Intermediate crude futures were down 0.3% or 10 cents to $40.52 per barrel. The spike in global cases has lowered expectations of growing fuel demand, with the U.S. Energy Information Administration having predicted a decrease of 600,000 barrels per day. The EIA has stated that it expects demand to recover by 2021. Signs that OPEC and its allies are thinking of easing output cuts come as Abu Dhabi National Oil Co announced plans to boost production in August.