Oil prices changed little on Friday. Oil posted its second-week losses as stocks across the globe increased and fuel demand struggled to rise to pre-coronavirus levels.
Both Brent and West Texas Intermediate (WTI) crude fell nearly 6% during the week, following signs of an abundance of supply in the markets. Saudi Arabia and Kuwait lowered official selling prices to Asia, US stocks rose, and traders hired tankers for floating storage.
Brent LCOc1 closed the session at $ 39.83, down 23 cents, or 0.6%, while West Texas Intermediate (WTI) crude oil CLc1 closed at $ 37.33, up 3 cents.
Coronavirus infections are on the rise in a few countries led by India.
US stock markets closed lower for the second week after several economic indicators showed that recovery after the severe impact of the pandemic was long and difficult.
Fears about oversupply increase the general feeling of uncertainty. Crude oil stocks in the United States rose by 2 million barrels last week.
Refineries gradually returned to their operations after production facilities were shut down due to storms in the Gulf of Mexico.
Traders are starting to re-lease tankers to store crude oil and diesel, another signal of excess supply, despite an economic recovery that stalled as the COVID-19 pandemic continues.
The Organization of Petroleum Exporting Countries (OPEC), including Russia, and its allies’ Market Watch Commitee will meet on September 17 to consider how to deal with global oversupply. The group dropped production deeply in May, June and July in order to reduce stocks.
Recently, both Saudi Arabia and Kuwait lowered official sales prices for crude oil to Asia for October, a sign that demand is slowing.
Money managers cut net long US crude futures and options positions last week.