Oil prices fell in early trade on Tuesday after weak Japanese industrial production data, not usually a market-moving factor, was enough to jangle trader nerves over a bumpy recovery in fuel demand as coronavirus pandemic restrictions ease.
U.S. West Texas Intermediate (WTI) crude futures briefly traded higher then fell 38 cents, or 1%, to $39.32 a barrel by 0038 GMT, after climbing 3% on Monday.
Brent crude futures for September fell 32 cents, or 0.8%, to $41.53 a barrel, paring Monday’s 69 cent gain. There were no early trades on the August contract, which expires on Tuesday.
“Japanese industrial production data released this morning may take the gloss off the overnight moves,” CMC Markets strategist Michael McCarthy said in a note.
