Fears about an oversupply also added to the general feeling of uncertainty
fell further on Friday and were on track for a second weekly drop after the US stock markets
tumbled and US stockpiles rose unexpectedly.
Brent fell 28 cents, or 0.7 per cent, at $30.78 a barrel by 12:10 GMT, and US crude was down 17 cents, or 0.5 per cent, to $37.13 a barrel.
Both benchmarks were 6 per cent down for the week.
are continuing to set the tone, including on the oil market. The renewed slide on US stock markets
dragged oil prices
down with it,” Commerzbank analyst Eugen Weinberg said.
The three main US stock indexes were headed for a second-straight weekly decline as recent economic indicators suggest a long and difficult recovery from the pandemic.
"Stock markets dived, oil followed, and Brent lost 15 per cent of its value in five trading sessions as money managers liquidated,” oil broker PVM’s Tamas Varga said. Also dampening the market mood, the US Senate killed a Republican bill that would have provided around $300 billion in new coronavirus aid.
Fears about an oversupply also added to the general feeling of uncertainty, Weinberg said.
In the United States, stockpiles rose last week, against expectations, as refineries slowly returned to operations after production sites were shut down due to storms in the Gulf of Mexico and the wider region.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.