Oil slips as US virus spike stokes demand worries

Oil prices edged lower amid concerns that a surge in new coronavirus cases, especially in the United States, will hamper any recovery in fuel demand.

Brent crude LCOc1 futures declined by 7 cents, or 0.16%, to $43.03, by 1404 GMT, after hitting a session low of $42.46. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 12 cents, or 0.30%, to $40.51 a barrel, having fallen to $39.90 earlier in the day.

Sixteen US states have reported record increases in new COVID-19 cases in the first five days of July, according to a Reuters tally.

Florida is reintroducing some limits on economic reopenings to grapple with rising cases. California and Texas, two of the most populous and economically important US states, are also reporting high infection rates as a percentage of diagnostic tests conducted over the past week.

Other parts of the world, such as Australia, have also been hit by a resurgence in new infections.

Saudi Arabia raised its August crude official selling prices on Monday in a sign it sees demand picking up. But some analysts said the move could weigh on already poor margins for refiners.