Oil prices dropped on Friday as concerns about rising US crude oil stocks to record levels, with increasing coronavirus incidents in the U.S. and China.
Brent crude futures settled down 3 cents at $40.91, falling 1% on the week. West Texas Intermediate (WTI) crude futures fell 23 cents to $38.49, down 1.6% on the week.
Optimism backed by vehicle traffic, which boosts fuel demand, has been fading away in US states that consume high amount of gasoline due to the fears that an increase in COVID-19 infections may stop demand recovery. Cases have risen sharply in California, Texas, and Florida, the three most populous states in the U.S.
On Friday morning, the governor of Texas changed the state’s reopening plan and ordered most bars to close due to the fluctuation in the cases.
According to official data, this could undermine the steady increase in the productions of refineries in the U.S. that currently work at about 75% of their capacity.
The suspicion of the employers may also delay the return of their employees to the office, which affects the return of gas demand.
Küresel ekonomik görünüm de geçtiğimiz ay kötüleşti ya da en iyi ihtimalle aynı kaldı, iktisatçılara göre devam eden durgunluğun daha önce tahmin edilenden daha derin olması bekleniyor.
It is thought that more than half of the managers who cut production in the US are expected to continue some production by the end of July.
US and Canadian energy firms have lowered their number of oil and gas facilities again this week.