Oil is weakening. The increase in coronavirus infections threatens demand

Updates: 03.07.2020 19:06

London – Oil prices are falling today. The increase in new coronavirus infections raises fears that demand will stop growing. For the whole week, however, both North Sea oil Brent and US light oil WTI strengthened due to reduced production and a sign of recovery of the world economy. Brent is aiming for a weekly profit of around five percent.

Around 18:55 CET, the price of Brent North Sea crude fell 0.7 percent to $ 42.84 a barrel. The US light oil WTI depreciated less than one percent at the same time and traded at $ 40.26 per barrel.

The United States registered more than 55,000 new coronavirus infections on Thursday, the most any country has ever seen in a single day. “If this trend continues, oil demand in the region will be jeopardized,” said Louise Dickson, an analyst at Rystad Energy.

The US economy created a record 4.8 million jobs in June, more than expected. According to a report from the Ministry of Labor on Thursday. However, the increase in new infections could slow down job growth.

“The latest rise in new infections threatens to reverse the fragile recovery of the US economy,” said PVM businessman Stephen Brennock.

Both Brent and WTI oil gained more than two percent on Thursday due to reports of US labor market developments and a decline in US oil reserves.

Oil prices in dollars per barrel (about 159 liters):

London – ICE Brent September 42,84 43,14
New York – NYMEX WTI August 40,26 40,65