Oil Falls on Signs OPEC+ Will Taper Cuts Even With Virus Surging
- The producer alliance’s monitoring committee to meet July 15
- Demand recovery is uncertain with virus continuing to spread
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Oil retreated before an OPEC+ committee meeting this week that may confirm the group’s intention to taper production cuts even as the coronavirus surges in many countries including the U.S.
Expectations are that the cartel will begin unwinding historic supply curbs as planned in August, and Russia’s top producers are also preparing to increase output next month. The additional supply will hit the market while the U.S. continues to struggle to control fresh outbreaks of the virus. An increase in tensions with China also hit market sentiment and prices dipped going into the close.