Fears of COVID-19 resurgence cause oil price to fall
SEOUL/LONDON (SOUTH KOREA/UK) – Oil price on Friday slipped to $43 a barrel. This was triggered by the concern that resurgent coronavirus cases could stall the fuel demand. But lower supply and encouraging signs of economic recovery resulted in crude heading for weekly gain.
With the US recording more than 55,000 new coronavirus cases on Thursday, the job grown which showed encouraging signs last month is likely to suffer a setback.
Louise Dickson of Rystad Energy said: “If this trend continues, oil demand in the region is at risk.”
Brent crude went down by 54 cents, or 1.3%, at $42.60 a barrel by 1210 GMT, and US West Texas Intermediate (WTI) crude slumped 53 cents, or 1.3%, to touch $40.12.
“The fragile US economic rebound is at risk of being undone by the latest surge in new infections,” said Stephen Brennock of oil broker PVM.
Fuelled by strong US job figures in June and a dip in crude inventories, both benchmarks rose more than 2% on Thursday.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field