Oil kept falling after just its second weekly drop since April as coronavirus infections and fatalities surpassed grim milestones in a reminder the outbreak is far from under control in many parts of the world.
Futures in New York fell below $38 a barrel after losing 3.2% last week. Deaths from the pandemic topped half a million, cases rose past 10 million and a United Nations agency reported the most infections for a single day. A surge in cases across the southern and western U.S. is causing states including Texas to reinstate measures to halt its spread, threatening the outlook for oil demand.
Prices would likely be falling further if it wasn’t for efforts by the OPEC+ alliance to restrict production. Iraq -- a habitual laggard when it comes to supply cuts -- is reassessing contracts to pump crude at fields where costs are high as it tries to contain expenses while curbing production, in a sign of the commitment within the group to ease a global glut.
West Texas Intermediate for August delivery fell 1.9% to $37.75 a barrel on the New York Mercantile Exchange as of 8:16 a.m. in Singapore. Brent for August settlement declined 1.8% to $40.28 a barrel on the ICE Futures Europe exchange after dropping 2.8% last week.
Source : Bloomberg