Oil falls 2% on coronavirus surge but gains 8% this week on vaccine hopes
Oil prices fell more than 2% on Friday, pressured by swelling output from Libya and fears that rising coronavirus infections may slow the recovery in the global economy and fuel demand.
Hopes for a vaccine kept crude futures on track for a second straight weekly gain.
Brent crude was down 72 cents, or 1.7%, at $42.78 a barrel. U.S.
West Texas Intermediate (WTI) crude futures settled down 99 cents, or 2.4%, to $40.13 a barrel.
For the week, both were headed for a rise of more than 8%.
Libyan oil production has risen to 1.215 million barrels per day (bpd), a Libyan oil source told Reuters, up from the 1.04 million bpd reported on Nov. 7 by the country’s National Oil Corp.
Also pressuring prices, U.S. government data showed crude inventories rose by 4.3 million barrels last week. Analysts had expected a draw of 913,000 barrels.
OPEC+ is due to hold a Joint Ministerial Monitoring Committee next week, which will give some indications of what the producers may decide at the next ministerial meeting on Dec. 1.
Algeria’s energy minister said this week that OPEC+ could extend the group’s current oil production cuts into 2021 or deepen them further if required.
Reference: CNBC
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