TOKYO- Oil prices fell for the second straight day on Wednesday as doubts re-emerged over demand, with COVID-19 cases continuing to rise worldwide and gasoline shortages in some regions.
Brent crude was down $1.03 or 1.3 percent at $78.06 a barrel, having fallen nearly $2 on Tuesday after touching $80.75, its highest in nearly three years.
US oil fell $1.02 or 1.4 percent to $74.27 a barrel, having dropped 0.2 percent in the previous session.
Oil prices have been charging higher as economies recover from pandemic lockdowns and fuel demand picks up, while some producing countries have seen supply disruptions.
Traders expect Organization of the Petroleum Exporting Countries (OPEC) and allies, usually known as OPEC+, will decide to keep supplies tight when they meet next week.
“While the supply backdrop has not changed much, oil prices hitting USD80/bbl would see pressure building for OPEC+ nations to increase their production quota,” ANZ Research said in a note.
Oil demand is expected to rise strongly in the next few years, OPEC forecast on Tuesday, sounding a warning that the world needs to keep investing in production to avert a crunch even as it transitions to less polluting forms of energy. -Reuters
