Oil prices decreased on Wednesday with expectations that global supply growth will outpace demand growth, despite fresh predictions that the new surge in COVID-19 cases will not curb the oil demand recovery as much as previously anticipated.
International benchmark Brent crude was trading at $72.84 per barrel at 0639 GMT for a 1.17% decrease after closing the previous session at $73.70 a barrel.
American benchmark West Texas Intermediate (WTI) was at $69.78 per barrel at the same time for a 1.34% loss after trade ended at $70.73 a barrel in the previous session.
The International Energy Agency (IEA), in its oil market report published on Tuesday, revised down its global oil demand estimates for 2021 and 2022 by around 100,000 barrels per day (bpd) compared to last month's assessment due to the new surge in COVID-19 cases.
The agency attributed its revision to the new containment measures put in place to halt the spread of the virus, which are projected to have an immediate impact on air travel and jet fuel consumption.
"A new surge in COVID-19 cases is expected to slow, but not derail, the recovery in oil demand that is underway," the IEA said.