Oil prices fell on Tuesday as optimism for a straightforward recovery in fuel demand faded and a looming increase in supply weighed on the market, with Libya's state oil company flagging progress on talks to resume exports.
U.S. West Texas Intermediate (WTI) crude futures fell 51 cents, or 1.28%, to trade at $39.19 per barrel, having jumped 3% on Monday.
Brent crude futures for September fell 17 cents, or 0.2%, to $41.68 a barrel, paring Monday's 92-cent gain. The less active August contract, which expires on Tuesday, fell 52 cents, or 1.25%, to trade at $41.17 per barrel, after gaining 69 cents on Monday.
Optimism on Monday had been based on strong growth in U.S. pending home sales, bolstering belief that global fuel demand is rising steadily as major economies reopen after coronavirus lockdowns.
But at the same time, coronavirus cases continue to rise in southern and southwestern U.S. states.
Source : Reuters