By Adedapo Adesanya
For the time since April 2020, oil posted a weekly loss despite closing positive on Friday. The previous day the commodity depreciated by 9 percent.
Brent crude, the international benchmark, rose 31 cents or 0.8 percent yesterday to trade at $38.86 per barrel. Brent has more than doubled since falling to a 21-year low below $16 in April.
The US West Texas Intermediate (WTI) crude was up 22 cents or 0.61 percent at $36.56 per barrel.
Prices had fell sharply as fears that a second wave of coronavirus could stunt economic activity and by extension affect commodity demand made worse by crude oil inventories rising significantly.
As a result, the oil benchmarks headed for weekly declines of around 8 percent, their first after six weeks of gains that have lifted prices off April lows.
Fears that the coronavirus pandemic may be far from over has brought the rally to a halt, with some major cookies around the world reporting spikes in new infections.
However, the market still continues to hold on to the continuous market-fixing efforts in supply by the Organisation of the Exporting Countries and allies, OPEC+ extending current production cut levels to July.
Analysts note that the world’s consumption of oil is unlikely to return to the levels before the coronavirus pandemic until late next year but the efforts to take off 10 percent daily by the group is doing well, especially with countries complying.
Although this is facing concerns from US shale restarting their production due to recent price rallies, prices may yet fall if supply worries grip the market.
US crude oil inventories have risen to a record 538.1 million barrels, as cheap imports from Saudi Arabia flowed into the country.
However, efforts are being put in place to reduce the possibility of this as the number of US crude oil drilling rigs, an indicator of future supply, fell by seven to 199 this week.
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