2020.08.2010:11:00UTC+00Oil Prices Fall On Demand Concerns

Oil prices fell over 1 percent on Thursday on concerns over demand recovery due to the resurgence of the coronavirus.

Benchmark Brent crude dropped 53 cents, or 1.2 percent, to $44.84 a barrel, while West Texas Intermediate (WTI) U.S. crude futures were down 49 cents, or 1.1 percent, at $42.62 a barrel.

The Organization of the Petroleum Exporting Countries and its allies, known an OPEC+, warned on Wednesday that the pace of oil market recovery appeared to be slower than anticipated.

Investors were also reacting to the lack of inflationary comments, downbeat economic outlook and negative comments about yield curve control in minutes from the Federal Reserve's latest policy meeting.

The minutes of the Fed's July meeting noted that the coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world, and that economic activity as well employment remain well below their levels at the beginning of the year.

On the supply front, stockpiles of crude in the United States fell for a fourth straight week, even as net imports rose, the Energy Information Administration (EIA) said on Wednesday.

According to the EIA data, fuel demand decreased by 14 percent from the year-earlier period over the last four weeks.