Oil Falls as Economic Fears Overshadow Tight Supplies

Oil futures fell on fears of a slowdown in global growth, tipping the scales against a possible tightening of supplies after talks between major producers faltered to increase production in the coming months.

Brent crude for September delivery fell 35 cents, or 0.5%, to $75.20 a barrel, and West Texas Intermediate crude for August delivery scored $74.23, down 33 cents, or 0.4%.

The finance ministers of the Group of Twenty countries warned on Saturday that the spread of strains of the Coronavirus and the lack of equitable access to vaccines for developing countries threatens the recovery of the global economy.

A Reuter’s statistic revealed that Covid-19 cases are increasing in 69 countries and that the daily rate indicates an increase since late June, and currently stands at 478,000.

Oil prices fell last Tuesday after the OPEC + group failed to reach an agreement to increase production from August, as a result of the UAE’s refusal to extend a proposed extension of OPEC + production cuts for eight months.