NEW YORK : Oil declined from a five-month high in New York with the US Federal Reserve and OPEC+ sounding caution on the demand recovery as many countries struggle to contain the coronavirus.
Futures fell about 1% below $43 a barrel amid a broader slide in equities after minutes from the Fed said the pandemic would weigh heavily on economic activity, repeating its view that the recovery would depend on containment of the virus. OPEC+ also warned at a meeting on Wednesday that the pace of the demand rebound was slower than expected and at risk from a prolonged second wave of the outbreak, while also urging laggards to adhere to their output pledges.
Oil has inched higher recently after a rally stalled in June, but is struggling to push past $43 a barrel as surging infections raise doubts about a sustained recovery in consumption. Prices have also closely followed the dollar this month, with the US currency strengthening after the release of the Fed minutes, making commodities such as crude less attractive for investors.
