Oil prices drop on oversupply warnings, rising Covid-19 cases

LONDON (Reuters) -Oil prices fell on Wednesday after the International Energy Agency (IEA) and OPEC warned of impending oversupply and as COVID-19 cases in Europe increased the downside risks to demand recovery, though a fall in U.S. gasoline stocks curbed losses.

Brent crude futures dropped 32 cents, or 0.4%, by 1410 GMT to $82.11 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 43 cents, or 0.5%, to $80.33 a barrel.

The IEA on Tuesday warned that while the “oil market remains tight by all measures, … a reprieve from the price rally could be on the horizon … due to rising oil supplies.”