Shafaq News / Oil prices closed slightly higher on Tuesday, with OPEC and its allies cutting production more than agreed in June, despite continued concern about demand with increasing cases of Covid-19 in the United States.

Brent crude contracts ended to 18 cents, or 0.42 percent, at the settlement of $ 42.90 a barrel.

US benchmark West Texas Intermediate crude futures increased 19 cents, or 0.47 percent, to settle at $ 40.29 a barrel.

And the production cut agreement has reached 107 percent in June, an OPEC source said on Tuesday.

Joint Ministerial Monitoring Committee of OPEC+ is scheduled to meet on Wednesday to decide whether to extend the unprecedented cuts of 9.7 million barrels per day or reduce it to 7.7 million barrels per day.

OPEC said in its monthly report that global oil demand is expected to record an increasing of seven million barrels per day in 2021 as the global economy recovers from the Covid-19 pandemic, but it will remain below 2019 levels.

This is the first report issued by OPEC to its forecasts for oil markets for next year. Saying that the forecast assumes that there will be no more downside risks in 2021, such as trade tensions between China and the United States, high levels of debt, or a second wave of coronavirus infections.

But the market remains cautious due to concern that US states may increase public isolation measures, as California did on Monday, following similar moves in other states including Florida and Texas.

New restrictions have also been introduced in Asia and Australia.

The OPEC Secretary General said that the oil market is heading towards balance with gradual increases in demand