07.07.202010:05:00UTC+00Oil Prices Decline On Demand Concerns

Oil prices fell over 1 percent on Tuesday amid concerns that record increases in new Covid-19 cases in some U.S. states will curb fuel demand in the world's biggest oil consuming country.

Benchmark Brent crude fell 48 cents, or 1.1 percent, to $42.62 a barrel, after hitting an intraday high of $43.19. U.S. West Texas Intermediate (WTI) crude futures were down 54 cents, or 1.3 percent, at $40.09 a barrel.

The United States is "still knee deep in the first wave" of the coronavirus outbreak, Anthony S. Fauci, the director of the National Institute of Allergy and Infectious Diseases, said as 16 U.S. states reported record increases in the new Covid-19 cases, in the first five days of July, according to a Reuters tally.

Florida is again closing its restaurants to indoor dining, gyms and other indoor venues just weeks after they reopened.

U.S. Federal Reserve official Raphael Bostic told the Financial Times in an interview that there are signs that the American recovery is "levelling off".

Investors await data from the American Petroleum Institute industry group later in the session for further direction. The U.S. Energy Information Administration will release its inventory report on Wednesday.