Oil slumped on Friday on its way to weekly gains
Oil prices fell on Friday. Oil is on track to post weekly gains as demand grows faster than supply and vaccines are expected to ease the impact of a resurgence in COVID-19 infections worldwide.
Brent crude futures for September, which expire Friday, fell 56 cents, or 0.7%, to $75.49 a barrel after rising 1.75% on Thursday.
The more active Brent contract for October fell 64 cents, or 0.9%, to $74.46 a barrel.
West Texas Intermediate (WTI) crude futures fell 60 cents, or 0.8%, to $73.02 a barrel, whittling down a 1.7% rise from Thursday.
Oil prices fell slightly amid cautious Asia-Pacific markets, as investors analyzed virus concerns and weaker-than-expected US GDP and jobs data.
However, both benchmark contracts were headed for weekly gains of more than 1%, supported by tight crude supply and strong demand indicators in the United States, the world’s largest oil consumer.
This week, oil prices were supported by the weak US dollar and strong US corporate gains. However, COVID-19 Delta cases developing in the USA may overshadow the demand outlook.
US refineries posted quarterly results that beat analysts’ expectations.
Despite rising coronavirus cases in the US, all of Asia and parts of Europe, high vaccination rates could limit the need for harsh quarantines that depleted demand during the peak of the pandemic last year.
Oil consumption continues to recover with global economic positivities.
Analysts also point to a rapid recovery in India’s gasoline consumption and industrial production following the COVID-19 surge earlier this year, as an indication that economies are more resilient to the pandemic.
