Oil set to end week lower on coronavirus resurgence fears
June 12, 2020 @ 15:30 +03:00
Oil prices edged higher on Friday but were on track for their first weekly fall in seven as new U.S. coronavirus cases spiked, raising the prospect of a second wave hitting demand. Brent was up 27 cents, or 0.7%, at $38.82 a barrel by 1204 GMT, having lost more than $1 earlier in the session.
After falling more than 5% on Friday, West Texas Intermediate was up 19 cents, or 0.52% to $36.53 a barrel. Both contracts ended around 8% lower on Thursday. The oil benchmarks are heading for weekly declines of more than 8%, their first after six weeks of gains which have lifted them off their April lows. Fears that the coronavirus pandemic may be far from over has brought the rally to a halt, with about half a dozen U.S. states seeing a spike in new infections.
Barclays on Friday raised its oil price forecasts for this year by $4 per barrel, citing a bigger deficit in the second half of the year, although it expressed caution on a slow recovery in the near term.
OPEC+ cut oil supplies by 9.7 million barrels per day (bpd), about 10% of pre-pandemic demand, and agreed last weekend to extend the reduction. U.S. crude and gasoline stockpiles grew last week, government data showed. U.S. crude inventories hit a record 538.1 million barrels, as cheap imports from Saudi Arabia flowed into the country.
Oil set to end week lower on coronavirus resurgence fears, Reuters, Jun 12