Oil falls on mounting Covid-19 cases

27 September, 2020 12:00 AM printer

NEW YORK: Oil edged lower on Friday, falling more than 2 per cent on the week as Covid-19 cases surged globally and oil supply is set to rise in coming weeks.

Brent crude futures settled at US$41.92 a barrel, down 2 US cents, while US West Texas Intermediate (WTI) crude futures lost 6 cents to US$40.25 a barrel, report agencies.

Brent dropped 2.9 per cent for the week and WTI sunk 2.1 per cent.

“There is this second wave of fear overhanging the oil market at this point and that’s holding us back,” said Phil Flynn, senior analyst at Price Futures Group in Chicago. In the world’s top oil consumer the United States, infections are rising in the Midwest, while New York City, which was hit hardest in the spring, is considering renewed shutdown mandates.