Oil records its second weekly loss in a row


There was no significant change in oil prices, at the close of trading on Friday, but it suffered a weekly loss for the second time in a row, as investors expect the continued glut of global supply if the weakening of demand increases in light of the growing cases of Coronavirus in some countries.
Brent crude ended the session down 23 cents, or 0.6 percent, to $ 39.83 a barrel, while US crude rose three cents to $ 37.33 a barrel. The two benchmarks are down about 6% each this week.
The rate of new infections in India is growing faster than anywhere, and the Ministry of Health announced a new jump in daily infection cases to 96,551 new cases, bringing the official total to 4.5 million.
American stocks retreated to suffer a weekly loss for the second time in a row, as recent economic indicators indicate a slow and difficult recovery from the pandemic.
“Financial markets continue to set the tone, including the oil market,” analysts at Commerzbank said in a note. “Fears about oversupply have exacerbated the general feeling of uncertainty.”
Crude inventories in the United States rose by two million barrels last week, against expectations, as refineries slowly reverted to operations after closing production sites due to storms in the Gulf of Mexico.
American energy companies have also recently been increasing the number of operating oil and gas rigs, but this week the number decreased to 238.
In another negative sign, dealers have begun to book tankers to store crude oil and diesel, in light of the faltering economic recovery with the continuing Covid-19 pandemic.
The stockpile issue will likely come up at a September 17 meeting of the Market Watch Committee of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, in the group known as OPEC +.
The group is restricting supplies to reduce stocks, but analysts say the meeting will likely focus on compliance by members rather than seeking deeper cuts. (Reuters)


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