Oil mixed on demand concerns following U.S. holiday
Oil prices were mixed in early Tuesday trade over demand concerns and a surge in COVID-19 cases following the U.S. Labor Day long weekend, the peak U.S. driving season.
22 out of 50 U.S. states reported a spike in coronavirus cases on the holiday weekend, while India and Britain also posted higher cases.
U.S. West Texas Intermediate crude futures slid 1.6%, or 64 cents, at $39.13 per barrel. Brent crude futures rose 0.1%, or 6 cents, at $42.07 per barrel.
Brent fell on Monday after Saudi Arabia’s Aramco cut selling prices for its Arab light crude, which investors saw as a sign that demand growth was lagging.
Also weighing on prices is the upcoming maintenance schedules for U.S. refineries, which could slash demand by almost 2 million bpd.
Brent and WTI broke out of the ranges they traded in August. WTI stood below $40 after trading at $42 most of the month, while Brent fell from $45.