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Oil fell last week in New York to $37.05 and Brent plummeted to $39.27, after President Trump’s positive Covid-19 diagnosis combined with labor market weakness led to heightened concerns over an economic recovery.
Prices fell this week amid growing concerns that another wave of the coronavirus pandemic will spark tighter lockdowns and further stifle oil demand.
Prices climbed $4 a barrel last week, closing at about $43 in London and $41 in New York. They were lifted by hurricane Sally in the Gulf of Mexico, which took more than 500,000 b/d offline and left production 30 percent below normal by week’s end.
Futures posted their first back-to-back weekly loss since April’s rout with the end of the summer driving season and concern about OPEC’s production compliance weighing on prices.
New York futures settled near two-month lows after gains in the dollar reduced the appeal of commodities priced in US currency and concerns about over-supply mount.
Oil prices rose for a fourth week in a row as the US Gulf Coast refineries began restarting, though gains were capped as investors shifted their focus from Hurricane Laura toward the slowing rebound in consumption.
The oil futures market has been trading in a narrow range for weeks with crude propped up by inventory drawdowns and high OPEC compliance with its production cut.
Prices squeezed out a small gain for the second straight week, but uncertainty around the US-China trade deal and fears of a resurgent pandemic limited the price rally.
Prices edged up to the highest since March last week on a larger-than-expected inventory draw, a slightly improved US jobs report, and hopes for a new stimulus package from Washington.
Oil posted a small gain in July, boosted by a steadily weakening dollar and OPEC’s restraint. Deep output curbs by OPEC+ have helped futures rebound from their plunge below zero in April, yet the unprecedented cuts will ease this month.
Oil edged higher last week with a weaker dollar overshadowing signs of a slowing global economic recovery. The dollar weakening to the lowest since January boosted the appeal of commodities priced in dollars.
Oil prices edged lower on Friday as concerns increased about the surge in coronavirus cases sapping fuel demand while major crude-producing nations report sharp increases in output.
