Oil prices fell on Thursday as new restrictions to stem a surge in COVID-19 infections increased uncertainty over the outlook for economic growth and a
recovery in fuel demand.
OPEC and its allies, together called OPEC+, had 102 percent compliance with their agreement to cut oil supply in September, two OPEC+ sources told Reuters ahead of a technical committee meeting on Thursday.
The group will ensure oil prices do not plunge steeply again when it meets to set policy at the end of November, OPEC’s Secretary General said on Thursday, adding that demand has been recovering more slowly than expected.
OPEC+ is due to taper production cuts by 2 million barrels per day (bpd), from 7.7 million bpd currently, in January.
The International Energy Agency said on Wednesday that a second wave of coronavirus infections could complicate efforts by producers to balance the market.
A fall in US inventories last week limited the fall in prices, however.
The American Petroleum Institute industry group said US crude, gasoline and distillate inventories all fell in the week to October 9.
The US Energy Information Administration is due to release
its weekly data on Thursday.