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The
United States reported more than 55,000 new coronavirus cases on
Thursday, a new daily global record for the pandemic. The rise
in cases suggested U.S. jobs growth, which jumped in June, could
suffer a setback.
"If this trend continues, oil demand in the region is at risk,"
said Louise Dickson of Rystad Energy.
Brent crude <LCOc1> was down 51 cents, or 1.2%, at $42.63 a
barrel by 0923 GMT, and U.S. West Texas Intermediate (WTI) crude
<CLc1> fell 56 cents, or 1.4%, to $40.09.
"The fragile U.S. economic rebound is at risk of being undone by
the latest surge in new infections," said Stephen Brennock of
oil broker PVM.
Both benchmarks rose more than 2% on Thursday, buoyed by strong
U.S. June jobs figures and a drop in U.S. crude inventories. [EIA/S]
Brent is still on track for a weekly gain of more than 5%.
Signs of economic recovery, and a drop in supply after a record
supply cut by the Organization of the Petroleum Exporting
Countries and allies, known as OPEC+, have helped Brent more
than double from a 21-year low below $16 reached in April.
Boosting recovery hopes, a private survey showed on Friday that
China's services sector expanded at the fastest pace in over a
decade in June.
OPEC oil production fell to its lowest in decades in June
[OPEC/O] and Russian production has dropped to near its OPEC+
target.
The bankruptcy filing of U.S. shale pioneer Chesapeake Energy
also supported prices by raising expectations production will
decline, JBC Energy said in a report.
Gasoline demand will be closely watched as the United States
heads into the July 4 holiday weekend.
(Additional reporting by Jane Chung; Editing by Elaine
Hardcastle and David Evans)
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