Oil prices fell on Tuesday, reversing gains from previous session on talk that the United States, Japan and India will release crude reserves to tame prices despite the threat of faltering demand as COVID-19 cases flare up in U-rope.
Brent crude futures fell 67 cents to $79 a barrel, while U.S. West Texas Intermediate crude futures fell 88 cents to $75 a barrel.
Meanwhile, the United States is expected to announce a loan of crude oil from its emergency stockpile on Tuesday as part of a plan it hashed out with major Asian energy consumers to lower energy prices.
The Opec+ cartel has so far rebuffed repeated requests by Washington to pump more oil.
On Monday prices rose more than 1% on reports that the group could adjust planned increases to output if large-consuming countries released crude from reserves or if the pandemic dampened demand.
Prices have dropped below $80 a barrel from a three-year high of more than $86 on October 25 amid talks of a co-ordinated release and a potential hit to energy demand from a fourth wave of Covid-19 cases in Europe.
A release from reserves is expected to have only a temporary effect on prices, analysts have said.