Oil prices rose on Friday, but the coronavirus’ re-spreading issue has sharply withdraw it down from higher levels due to concerns that it could halt the US economic recovery.
Oil prices rose on Friday, however it has been sharply withdrawn down from higher levels due to coronavirus’ re-spreading fears that could halt the US economic recovery.
While the US unemployment rate is likely to be at double digits by the end of 2020, the effects of a very fast re-opening of the economy are discussed after the virus-related crashes have ceased.
Growing fears, Apple announced that if the virus spreads further, it will close some stores. Data about the virus relating to North and South Carolina, scares everyone.
Brent crude rose 61 cents to $42.12 a barrel by 1:26 p.m. EDT (1726 GMT), after trading up to $42.92 a barrel and then briefly turning negative. U.S. crude was 75 cents higher at $39.53 a barrel, after earlier touching $40.49.
WTI crude is up 9.2% so far this week, while Brent is up 9%.
Iraq and Kazakhstan’s promise to comply with oil cuts at the OPEC + panel Thursday means that the Organization of the Petroleum Exporting Countries and allies known as OPEC + could deepen production and supply cuts in July.
As another sign of the recovery in the market, Brent on Thursday moved into backwardation. Oil has been seen to be more expensive for fast deliveries, ie close term contracts, for the first time since March compared to long-term contracts.
US crude oil inventories set a new record this week, but fuel inventories have dropped.
The U.S. oil and gas rig count, an early indicator of future output, fell to a record low for a seventh week in a row, dropping by 13 to 266 this week, according to data going back to 1940.