US coronavirus cases have increased this week, and the second wave probability for the COVID-19 outbreak has increased in the world’s largest crude oil and fuel consumer. Oil prices dropped on Friday.
Brent LCOc1 was down $1.34, or 3.5%, at $37.21 a barrel by 0701 GMT, having dropped nearly 8% in the previous session. West Texas Intermediate (WTI) CLc1 was down $1.37 cents, or 3.8%, at $34.97 a barrel, after slumping more than 8% on Thursday.
The fact that the coronavirus pandemic may again pose danger, halted the rising rally of the oil that was falling in April. Infections in the US have exceeded 2 million.
Oil benchmarks are heading towards their first weekly decline in seven weeks. Brent and US crude oil fell more than 12%.
Inventories have increased this week against the expectations of many analysts, COVID-19 cases also point to a second wave in the US and elsewhere.
For now, it is clear that the deepest OPEC + cuts of 9.7 million bpd will end at the end of July and ratcheting down to 7.7 million bpd.
According to government data, US crude oil and gasoline stocks grew last week. US crude oil stocks rose to 538.1 million barrels as cheap imports from Saudi Arabia flowed into the country.
Increased number of hospitalized patients in coronavirus infections and hospitals, including Texas and Arizona, raise concerns about supply and demand imbalances.
Some officials are talking about the possibility of getting closer to a disaster’s cliff.