Oil prices fall as virus cases soar

Gulf Today Report

Oil prices declined on Tuesday as soaring coronavirus cases worries investors, however, hope for a drawdown in crude oil inventory in the United States capped losses.

Brent crude oil futures slipped 10 cents, or 0.2%, to $55.56 a barrel while US West Texas Intermediate (WTI) fell 8 cents, or 0.2%, to $52.17 a barrel.

Stephen Innes, chief global market strategist at Axi in a note said, "I think the market will be rapid to conclude that yesterday's modest pullback in price, provided the virus spread in China remains contained, was but a blip on the radar screen." 

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US crude stockpiles likely declined for a fifth straight week, refined products inventories, on the other hand, jumped last week, according to data.

Goldman Sachs predicted that Brent could jump to $65 per barrel by summer 2021 due to Saudi Arabia’s output cut and shift in power in the United States.

The Wall Street investment bank had previously predicted oil would hit $65 by year-end.