WASHINGTON (dpa-AFX) - Oil prices fell on Wednesday as investors fretted about a second wave of coronavirus infections in China.
Benchmark Brent crude declined 0.7 percent to $40.67 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 1.1 percent at $37.96.
Both benchmarks jumped over 3 percent on Tuesday after the International Energy Agency (IEA) raised its 2020 oil demand forecast to 91.7 million barrels per day (bpd) and data showed U.S. retail sales rebounded sharply in May after two months of declines.
Beijing reported 31 new cases of novel coronavirus for June 16, four more than the day before and taking the total number of cases to 137 in six days.
Elsewhere, South Korea confirmed 43 more coronavirus cases in 24 hours, Brazil reported a record 34,918 new infections and India registered over 10,000 new Covid-19 cases for the fifth day in a row, while new coronavirus infections hit record highs in six U.S. states on Tuesday.
New coronavirus outbreaks and geopolitical tensions offset investor optimism stemming from signs of a U.S. economic recovery.
Twenty Indian soldiers were killed in action after the Army clashed with Chinese troops at a disputed border site in eastern Ladakh. North Korea rejected a South Korea offer to send special envoys and vowed to send back troops to the border.
After the American Petroleum Institute report showed a rise in U.S. crude and fuel inventories, investors now await official data from the U.S. Department of Energy's Energy Information Administration for further direction.
A panel led by oil cartel Opec will meet on Thursday to further discuss ways to strengthen and review compliance with producers' output cut promises.
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