<p>Oil prices nudged higher on Monday on tighter supplies from major producers, but concerns that a record rise in global coronavirus cases could curb a recovery in fuel demand checked gains.</p>.<p>Brent crude rose 9 cents, or 0.2%, to $42.28 a barrel by 0009 GMT, while U.S. crude was at $39.76 a barrel, up 1 cent.</p>.<p>Both contracts rose about 9% last week and Brent crude futures flipped into backwardation, where oil for immediate delivery costs more than supply later, usually an indication of tightening supply. </p>.<p>In the United States and Canada, the number of operating oil and natural gas rigs fell to a record low even as higher oil prices prompt some producers to start drilling again.</p>.<p>Iraq and Kazakhstan pledged to comply better with oil production cuts during an OPEC+ panel on Thursday.</p>.<p>However, the OPEC+ group, consisting of Organization of the Petroleum Exporting Countries and its allies including Russia, has yet to decide whether to extend a record supply cut of 9.7 million barrels per day (bpd) for a fourth month in August.</p>.<p>Oil prices have also been supported by a recovery in fuel demand globally following a collapse in April-May during coronavirus shutdowns as countries across the world resume economic activities.</p>.<p>Still, the World Health Organization reported a record jump in global coronavirus cases on Sunday, with the biggest increase seen in the north and south America.</p>.<p>Spikes in coronavirus infections in parts of the world such as Beijing and Australia's second-most populous state Victoria have prompted authorities to reimpose movement restrictions to curb the spread.</p>.<p>"The potential economic damage of a new round of COVID-19 countermeasures will likely contain any investor enthusiasm," said Michael McCarthy, chief market strategist at CMC Markets.</p>
<p>Oil prices nudged higher on Monday on tighter supplies from major producers, but concerns that a record rise in global coronavirus cases could curb a recovery in fuel demand checked gains.</p>.<p>Brent crude rose 9 cents, or 0.2%, to $42.28 a barrel by 0009 GMT, while U.S. crude was at $39.76 a barrel, up 1 cent.</p>.<p>Both contracts rose about 9% last week and Brent crude futures flipped into backwardation, where oil for immediate delivery costs more than supply later, usually an indication of tightening supply. </p>.<p>In the United States and Canada, the number of operating oil and natural gas rigs fell to a record low even as higher oil prices prompt some producers to start drilling again.</p>.<p>Iraq and Kazakhstan pledged to comply better with oil production cuts during an OPEC+ panel on Thursday.</p>.<p>However, the OPEC+ group, consisting of Organization of the Petroleum Exporting Countries and its allies including Russia, has yet to decide whether to extend a record supply cut of 9.7 million barrels per day (bpd) for a fourth month in August.</p>.<p>Oil prices have also been supported by a recovery in fuel demand globally following a collapse in April-May during coronavirus shutdowns as countries across the world resume economic activities.</p>.<p>Still, the World Health Organization reported a record jump in global coronavirus cases on Sunday, with the biggest increase seen in the north and south America.</p>.<p>Spikes in coronavirus infections in parts of the world such as Beijing and Australia's second-most populous state Victoria have prompted authorities to reimpose movement restrictions to curb the spread.</p>.<p>"The potential economic damage of a new round of COVID-19 countermeasures will likely contain any investor enthusiasm," said Michael McCarthy, chief market strategist at CMC Markets.</p>
