In the early Asian trading session, oil was little changed as investors weigh weak near-term fuel demand due to the tightened pandemic restrictions against distribution of vaccines in some regions.
Oil Futures were traded nearly at $47 a barrel after soaring 0.9 per cent on Monday. New York is heading towards second lockdown after a surge in number of coronavirus cases, while London will be having England’s toughest restrictions from Wednesday. The tighter pandemic restrictions come as the US had started delivering its first batch of Covid-19 vaccines.
Meanwhile, OPEC (Organization of Petroleum Countries) cuts its projected oil demand level for the first quarter of the coming year as OPEC+ group, which includes the OPEC, Russia, and other allies has decided to increase the crude oil production by 500,000 barrels per day from January.
On January 4, OPEC+ will held its meeting to further consider any possible cut in the increased monthly supplies although a report from the group on Monday suggests that it can incrementally restore production level over the next quarter without increasing supply in the market.