Oil prices are slipping again on coronavirus fears. West Texas Intermediate crude dropped to nearly $35.00 per barrel on Monday morning, losing 8.3% of its gains. The WTI has lost more than 11% since June 10. Brent crude fell by 2% to $37.96 on Monday, and lost 8.4% of its value last week.
West Texas Intermediate crude has been on a wild ride since the onset of the coronavirus. Demand languished as the virus kept drivers off the road and slowed supply chains. The lack of demand pushed storage capacity to the brink and culminated in a dramatic, historic price drop in April.
In April, OPEC+ agreed to curb supply by nearly 10 million barrels per day. Initially, the 23 country alliance planned to ease cuts to 7.7 million barrels per day, beginning on July 1st. As of this time, the group has extended the more drastic cuts, in an attempt to support oil prices. OPEC+ will meet later this week to discuss compliance with ongoing cuts.
On Friday, Baker Hughes data showed the number of active rigs drilling for oil falling to 199. The number of rigs actively drilling in the United States has steadily fallen since mid-March. The active rig count is a leading indicator for future oil production.
Even as states begin to reopen, there are ongoing fears about a second surge of Covid. The Chinese government reported 79 new cases of the coronavirus over the weekend. In the United States, more than 25,000 new cases were reported on Saturday alone. In total, the United States has seen more than 2 million infections and 114,000 deaths from the virus.