Oil Prices Settle Lower by 1%

Oil prices decline on Tuesday, after rising earlier in the session to its highest level in about five months, amidst concerns about a second COVID-19 wave as the number of cases increase in many countries.

In addition, the market is still anticipating passing the second stimulus package by the U.S. Congress, amid differences between Democrats and Republicans.

The global benchmark Brent crude oil futures declined by around 50 cents or 1.1% to settle at $44.50 per barrel.

Meanwhile, the U.S. West Texas Intermediate (WTI) closed lower by 33 cents of 0.8% at $41.61 a barrel.

Global demand for petroleum products amounted to 93.4 million barrels per day (b/d) in July, down by 9.1 million b/d compared with its level in July 2019, but higher than the average 85 million b/d recorded during the second quarter (Q2) of 2020, according to data by the U.S. Energy Information Administration (EIA).