Oil prices fell on Tuesday as shipping traffic resumed through the Suez Canal after days on hold and a spotlight switched to an OPEC+ meeting in the week where the extension of supply curbs may be on the table amid new coronavirus pandemic lockdowns.
Brent crude was down 15 cents, or 0.2%, at $64.83 a barrel by 0115 GMT, after gaining 0.6% on Monday. U.S. oil was down 1 cent at $61.55 a barrel, having fallen 1% within the previous session.
Saudi Arabia is prepared to accept an extension of the production cuts through June, and is also ready to prolong voluntary unilateral curbs amid the latest wave of coronavirus lockdowns, a source briefed on the matter said on Monday.
“Market expectations for no change to output are largely priced in,” said Howie Lee, economist at OCBC Bank in Singapore. The revival of heavy coronavirus caseloads in Europe “has put a brake on oil’s resurgence”.