Oil was down on Wednesday morning in Asia, giving up some of its gains from the previous session.
Brent oil futures were down 0.12% to $40.65 by 9:45 PM ET (2:45 AM GMT), giving up its earlier gains. WTI futures slid 1.54% to $38.34.
Declining optimism levels over the global economic recovery from the COVID-19 is starting to over-ride confidence in the black liquid after OPEC+ producers committed to extend cuts until the end of July.
With the number of global cases continuing to increase daily and some countries, including South Korea, battling a second wave of cases, investors fear that this resurgence of cases could impact the already-fragile demand recovery.
The American Petroleum Institute also jolted the market with its surprise estimate of an 8.4-million-barrel build for the week ended June 5 on Tuesday, prompting renewed fears of a supply glut. Investors are now looking to the Energy Information Administration prediction, due later in the day.
API reported a 500,000-barrel draw for the previous week.