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Oil prices have dropped due to surging Covid-19 cases around the world despite OPEC+ stating that it is fully adhering to supply cuts to support prices.
Brent crude futures decreased by $0.22 to reach at $45.15 a barrel while the US West Texas Intermediate (WTI) futures fell by $0.23 to reach $42.66 a barrel, Reuters reported.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, made output cuts since May to handle the economic fallout as a result of the Covid-19 outbreak.
Starting from 1 August, OPEC+ eased the production cuts to 7.7 million barrels per day (Mbpd), from a previous reduction of 9.7Mbpd from May until July.
The news agency cited two OPEC+ sources as saying that compliance with the group’s supply cuts stood at 97% last month.
As part of its H1 earnings announcement, Australian miner and oil producer BHP said: “We believe that the most significant risks to the physical (oil) market have now passed.
“Prices may well build upon their recent recovery if mobility continues to improve globally.
