Oil Settles But Recovery Concerns Persist

There was little change in oil futures on Tuesday (September 22nd) after heavy losses overnight, as the latest hurricane receded in the Gulf of Mexico, but concerns about fuel demand continued due to an increase in coronavirus cases around the world.

By 0637 GMT, Brent crude futures were down 3 cents, or 0.1%, to $ 41.41 a barrel, erasing small gains made earlier in the session.

West Texas Intermediate crude futures for October delivery, which expire on Tuesday, fell four cents, or 0.1%, to $ 39.27 a barrel.

November’s most active contract fell 3 cents, or 0.1%, to $ 39.51 a barrel.

Crude prices recovered somewhat after declining by about 4% on Monday, as oil refineries in Texas continued their work after expectations that a tropical storm would lose its strength, which eases concerns about US refiners’ demand for feedstock. However, concerns about global demand remained.