Oil prices moved lower on Wednesday in choppy trading as demand concerns exacerbated by a possible second wave of coronavirus infections as countries ease lockdowns outweighed a possible extension of supply cuts by the Organization of the Petroleum Exporting Countrries and its allies.
West Texas Intermediate crude fell 32 cents, or 1.2%, to trade at $25.46 U.S. per barrel, while Brent crude, the international benchmark, was unchanged at $29.98.
U.S. infectious disease expert Anthony Fauci on Tuesday told Congress that easing coronavirus lockdowns could set off new outbreaks of COVID-19 which has killed 80,000 Americans and badly damaged the world’s biggest economy and oil consumer.
New outbreaks have been reported in South Korea and China, where the health crisis started before spreading across the globe, prompting governments to lock down billions of people, devastating economies and demand for oil.
The U.S. Energy Information Administration (EIA) now expects world oil demand to fall by 8.1 million barrels per day (bpd) this year to 92.6 million bpd, compared with a previous forecast for a drop of 5.2 million bpd.
The EIA also expects U.S. output to fall by 540,000 bpd, against a previous forecast of 470,000 bpd. It expects global output of 11.7 million bpd this year and 10.9 million bpd in 2021.
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