17.08.202010:16:00UTC+00Oil Prices Ease As Demand Concerns Weigh

Oil prices eased on Monday as investors fretted over uncertain prospects for a recovery in fuel demand due to the Covid-19 pandemic and rising supply.

The downside, however, remained limited amid expectations that China plans to ship in large volumes of U.S. crude in August and September.

Benchmark Brent crude fell 18 cents, or 0.4 percent, to $44.62 a barrel, while U.S. West Texas Intermediate crude futures were down 9 cents, or 0.2 percent, at $41.92 a barrel.

As coronavirus spikes show no sign of abating, major forecasters believe that global oil demand won't return to 2019 levels until at least 2022.

The International Energy Agency (IEA) said last week that it expects global oil demand to fall by 8.1 million barrels a day year-on-year to 91.1 million barrels a day this year, despite a recovery in business and industrial activity.

The U.S. Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries (OPEC) have also reduced their outlooks for global oil production this year, with none projecting oil demand back at 2019 levels by the end of next year.