Oil falls as worsening pandemic threatens demand
Oil prices dropped almost 1% on Friday as an increase in crude production came amid a worsening pandemic. Rising coronavirus cases are feared to reimpose restrictions on movement and consumption that will heavily weigh on fuel demand.
Brent crude fell 0.9% or 36 cents, at $40.57 per barrel following a 3% fall on Thursday. U.S. West Texas Intermediate lost 0.9%, or 36 cents, at $38.36 per barrel after dropping 4% in the last session.
W.T.I. is on course for a 5% drop this week, while Brent is expected to fall more than 3%. Both benchmarks are set to decline in a second consecutive week.
Rising crude supplies from OPEC producers are weighing on the oil market as production in September climbed by 160,000 bpd month-on-month. The increase was due to more supplies coming from Iran and Libya.
Crude output from Libya rose to 270,000 bpd as the country increased its exports.
Meanwhile, global COVID-19 cases rose to over 34 million, 2 million more than last week. Death toll surpassed 1 million this week.