Crude prices: Oil down 3% after economies wobble

NEW YORK:

Oil prices fell 3% on Friday after US President Donald Trump tested positive for Covid-19, roiling risky assets, and as rising global crude output threatens to overwhelm the market’s weak recovery. Benchmark Brent and US crude were both headed for a second straight week of losses. The uncertainty surrounding the US president’s health added to a series of jitters, including a lacklustre US unemployment report and increased supply from major world oil producers. “It’s been a rough week - and now the president’s diagnosis sends a shudder through markets,” said John Kilduff, partner at Again Capital in New York. “The Covid-19 pandemic has weighed more on the oil market than any other asset class. This is a worst-case scenario for the oil market.” Brent crude was down $1.12, or 2.7%, at $39.81 a barrel, after earlier touching a session low of $38.79 a barrel. US oil was down $1.04, or 2.7%, at $37.67 a barrel. The US and Brent crude are heading for drops of around 6% and 5% respectively this week in a second consecutive week of declines.

Published in The Express Tribune, October 3^rd, 2020.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.