Oil prices fell on Tuesday as concerns over mounting supply returned to the fore after leading producers delayed talks on 2021 output policy, while the coronavirus pandemic continues to sap fuel demand.

Brent crude was down by 35 cents, or 0.7% at $47.53 a barrel by 0722 GMT, after dropping more than 1% on Monday. West Texas Intermediate was down by 30 cents, or 0.7% at $45.04, having dropped 0.4% in the previous session. Both contracts surged around 27% in November after COVID-19 vaccine developments raised hopes of an economic recovery that could revive fuel demand.

OPEC+ delayed talks on output policy for next year until Thursday, three sources told Reuters, as key players still disagreed on how much oil they should pump amid weak demand. The grouping, including the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, had been scheduled to hold its meeting on Tuesday after discussions of key ministers on Sunday failed to reach a consensus.

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Source: OrientEnergyReview