Selava Omar – Xeber24.net
The effect of the Corona virus on the economy appears to be deeper than it believes. Contrary to the effects of the epidemic in the medium and long term, its effect was immediate on oil prices, especially in the American markets, according to Sky News.
After witnessing an increase in Asian markets, prices returned to decline, driven by the big jump in the number of HIV infections in the United States and China, with concerns about increasing American production, while crude inventories are still at record highs.
Brent crude futures fell to $ 41.02 a barrel, down 1% on a weekly basis, while US West Texas Intermediate crude futures fell to $ 38.49 a barrel, incurring a weekly loss of 1.6%.
In US trading, early gains with support from some optimism about growing traffic have faded, which boosts fuel demand, due to fears that increased cases of Covid-19 in US states that consume large gasoline may undermine demand recovery.
Cases have increased sharply in California, Texas and Florida, the three most populous US states, according to Reuters.
And oil prices rose, earlier Friday, to continue the gains made thanks to optimism about the recovery of demand for fuel around the world.
By 04:31 GMT, US West Texas Intermediate crude futures rose 57 cents, or 1.5%, to $ 39.29 a barrel, but are heading towards a slight decline this week.
Brent crude futures rose 64 cents, or 1.6%, to $ 41.69 a barrel, also heading towards a limited decline in the week.
Analysts say data from satellites show a strong recovery in traffic in China, Europe and across the United States, indicating an improvement in fuel demand.
However, there are concerns about the high incidence of Covid-19 in states located in the south of the United States, which may hinder the recovery of demand, especially since some of these states, such as Florida and Texas, are among the largest consumers of gasoline.
Likewise, the possibility of higher US crude production holds back gains today.
Source: Sky News