Oil prices fell due to fears of continued weak demand

Crude oil prices fell in the beginning of weekly trading, Monday, due to fears of continued weak demand for crude oil, in conjunction with an expected reduction in the agreement to reduce production, which means more global supplies. 

By 07:00 GMT, global benchmark Brent crude for September delivery fell 0.77 percent, or 34 cents, to $ 42.80 a barrel.

Also, US West Texas Intermediate crude for September delivery fell 0.76 percent, or 31 cents, to $ 40.44 a barrel.

Oil prices fell due to fears of continued weak demand

Last week, the (OPEC +) alliance agreed to reduce its second-stage production cut from August to the end of 2020, to 7.7 million barrels per day.

The volume of production reduction for the first stage is 9.7 million barrels per day, which began in early May, until the end of this month, while the third stage begins in the beginning of 2021 until April 2022, reducing the reduction to 5.7 million barrels per day.

And the European Union failed, on Saturday, to reach an agreement on a financial rescue package for the 27 bloc countries, to counter the negative economic consequences of the Corona pandemic.

The success of the European Union on the rescue package meant pumping liquidity into the economies of the bloc, especially Spain and France, which increased the hope for an increase in demand for crude.

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