Oil prices decline on Monday

Oil prices fell on Monday morning, as an increase in coronavirus cases prompted several US states to impose tighter travel restrictions which could dampen demand recovery at the world’s largest consumer.

Brent crude fell 27 cents to $42.97 a barrel, while US crude futures dropped 28 cents to $40.27 a barrel.

In addition, the Organization of the Petroleum Exporting Countries (OPEC) and Russia are expected to ease their supply cuts to 7.7 million barrels per day (mbpd) as global oil demand has recovered and prices have bounced back, Reuters reported, citing OPEC+ sources.

Crude prices have recovered sharply from multi-decade lows in April as the OPEC+ cut production by 9.7 mbpd over May to July.

Meanwhile, OPEC’s Joint Ministerial Monitoring Committee (JMMC) is scheduled to meet this week to recommend the next level of cuts after compliance in the group hit 107% in June, up from 77% in May.