Oil gains as market ignores new COVID-19 cases – Saudi Gazette

Oil gains as market ignores new COVID-19 cases – Saudi Gazette

OSLO “” Oil prices gain Friday morning, as traders ignore new COVID-19 spikes, partly correcting losses of previous sessions.

Oil prices rose on Friday, extending gains on optimism about a recovery in fuel demand worldwide, despite a surge in coronavirus infections in some US states and signs of a revival in US crude production.

US West Texas Intermediate (WTI) crude futures gained 57 cents, or 1.5%, to $39.29 at 0431 GMT but were on track for a slight drop for the week.

Rystad Energy's Head of Oil Markets Bjornar Tonhaugen said, "Traders show some reserved positivity in today's session. Although oil prices saw some modest gains earlier in the day, the contracts retreated a bit, only to tick up again.

"Prices had a good run some days ago and both contracts enjoyed levels above $40. These levels were lost in the last trading sessions as valid concerns about the continuous rise in infections in the US and other key markets weighted in.“

The risk is that the high rates of infections can bring back lockdowns and effectively slash demand again. And although road fuel demand seems to show signs of life, the concern fire is getting more fuel by the day, Tonhaugen said.

"Texas is halting