Oil fell below $ 43 on Friday, as coronavirus cases raised concerns that may lower fuel demand, but crude oil still moves towards a weekly gain on signs of lower supply with wider economic recovery.
The U.S. reported more than 55,000 new cases of coronavirus, a new daily global record for the pandemic, on Thursday. The increase in cases suggested that there might be a setback in USA at the unemployment which gave good dropping signs in June. If this trend continues, oil demand in the region is also at risk.
Brent crude LCOc1 was down 51 cents, or 1.2%, at $42.63 a barrel by 0923 GMT, and West Texas Intermediate (WTI) crude CLc1 fell 56 cents, or 1.4%, to $40.09.
Both benchmark rose more than 2% on Thursday, the US experienced strong business figures in June and a drop in US crude oil inventories. Brent is still on the way to get more than 5% weekly earnings.
Signs of economic recovery, and a drop in supply after a record supply cut by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, have helped Brent more than double from a 21-year low below $16 reached in April.
After the signs of economic recovery and the record drop in supply applied by the Organization of the Petroleum Exporting Countries and its allies, have helped Brent more than double from a 21-year low below $16 reached in April.
A special survey that boosted prospects for improvement showed on Friday that China’s service industry expanded at its fastest pace in ten years in June.
OPEC oil production fell to its lowest level in decades in June, and Russian production approached the OPEC + target.
Due to the holiday of July 4th in US during the weekend, gasoline demand will be closely monitored.