Oil prices slip as weak Japan data exposes market jitters over fragile demand

MELBOURNE: 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 92-cent gain. There were no early trades on the August contract, which rose 69 cents on Monday and expires on Tuesday.