2020.07.1410:28:00UTC+00Oil Extends Losses On Worries About Demand

Oil prices fell on Tuesday to extend losses from the previous session as a record daily rise in global coronavirus cases stirred concerns about slow demand growth. In addition, traders remained on edge amid expectations that OPEC+ might ease output cuts from August in an upcoming meeting.

Benchmark Brent crude dropped 25 cents, or 0.6 percent, to $42.47 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 29 cents, or 0.8 percent, at $39.80 a barrel, Both benchmark contracts fell over 1 percent in the previous session.

California on Monday banned indoor dining and shuttered movie theaters and bars as coronavirus infection spread beyond the Sun Belt.

Indoor religious services, gyms and hair and nail salons are again off-limits in most of the state to head off surging coronavirus cases and hospitalizations.

As global coronavirus infections surged past 13 million, the WHO warned that "the virus remains public enemy number one" and the pandemic could get far worse if countries around the world do not follow basic healthcare precautions.

An OPEC meeting later this week is expected to recommend an increase in output. Under the existing agreement, OPEC+ is set to taper its record supply cut of 9.7 million barrels per day (bpd) to 7.7 million bpd from August through December.

Markets also await data on fuel consumption due later today from the American Petroleum Institute industry group and on Wednesday from the U.S. Energy Information Administration.