Oil in New York is heading for a weekly decline as surging coronavirus cases raised fresh concerns about demand, while the market is continuing to grapple with ample supply.

Futures are down 2.2% this week after fluctuating in the tightest trading range since December. Surging infections across major economies is leading to the reintroduction of restrictions to curb the outbreak, with the virus showing no signs of abating in the U.S. Meanwhile, American crude stockpiles are near record highs and tankers that have been storing much of the world’s oil as demand cratered are starting to offload cargoes.

West Texas Intermediate for August delivery rose 0.3% to $39.74 a barrel on the New York Mercantile Exchange as of 8:42 a.m. Singapore time after falling 3.1% on Thursday. The contract has traded in a range of $1.81 this week. Brent for September settlement gained 0.4% to $42.53 after losing 2.2% in the previous session. Prices are down 0.6% this week.

Source : Bloomberg