Oil prices have retreated, as demand for fuel is weakening due to concerns over the increase in coronavirus infections, while major oil producing countries are preparing to increase production.
On Thursday, the United States announced at least 75,000 new cases of Covid-19, a record daily number. Spain and Australia reported their biggest daily jump in cases in more than two months, and cases continued to rise in India and Brazil.
Fuel demand recovered significantly from a 30 percent drop in April after countries around the world curbed moves and halted business. But consumption is still below pre-pandemic levels and fuel purchases are declining as casualties increase.
Brent crude futures were settled down 23 cents at $ 43.14 a barrel. US West Texas Intermediate crude fell 16 cents to $ 40.59. There was little change in both raw materials from last week.
The benchmarks fell 1 percent on Thursday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, in what is known as OPEC +, agreed to cut supply cuts of 9.7 million barrels per day, which were implemented earlier this year by two million barrels per day, starting in August. .
According to data from Baker Hughes Energy Services, American energy companies have reduced the number of oil and natural gas rigs operating to the lowest record low for the eleventh week in a row.
Raymond James analysts said, “The US drilling activity will rise again after approaching 250 excavators, or perhaps after the current levels.” They expect the average number of rigs to reach 270 in the second half of 2020.