Oil slipped Friday but remained on track for a weekly gain as aggressive supply cuts and better-than-expected U.S. economic data overshadowed a surge in coronavirus cases in the world’s largest economy.

Futures in New York fell toward $40 a barrel in Asian trading, but are still up almost 5% for the week. Crude rose along with broader markets on Thursday as data showed a rebound in the U.S. jobs market accelerated in June. That came after American crude stockpiles fell by the most this year and a survey showed OPEC oil production fell to the lowest since 1991 last month.

The virus continues to surge unabated across large parts of the U.S., however, clouding the outlook for energy demand. The worsening outbreak may not have been fully captured in the jobs data, which provided a snapshot of hiring in the middle of the month before many states reversed course on their re-openings.

Oil has hovered around $40 a barrel this week as the murkier demand outlook was balanced by the OPEC+ alliance’s commitment to reducing output, with Russia showing near total compliance with its targets for a second month. The group hasn’t made any decision yet on whether to extend its full cutback -- which stands at 9.6 million barrels a day -- into August, Russian Energy Minister Alexander Novak said. The coalition next meets on July 15.

West Texas Intermediate for August delivery fell 0.8% to $40.31 a barrel on the New York Mercantile Exchange as of 8:25 a.m. in Singapore after closing up 2.1% on Thursday. Brent for September settlement declined 0.8% to $42.78 on the ICE Futures Europe exchange, paring its weekly gain to 4.3%.

Source : Bloomberg