NEW YORK — Oil prices lost about 1% on Friday as the economic recovery worldwide runs into stumbling blocks due to renewed coronavirus lockdowns and on worries about rising crude supply.
The euro zone’s economic recovery from its deepest downturn on record stalled this month as pent-up demand unleashed by the easing of lockdowns in July dwindled, a survey showed. By contrast, U.S. housing and manufacturing survey data came in better than expected.
Brent crude futures settled at $44.35 a barrel, down 55 cents, 1.2%. U.S. West Texas Intermediate (WTI) crude futures settled at $42.34 a barrel, falling 86 cents, or 1.1%.
Brent fell about 1% for the week, while WTI saw a weekly rise of nearly 1%.
India’s crude oil imports fell in July to their lowest level since March 2010, while U.S. motorists drove 13% fewer miles in June than a year earlier, according the U.S. Department of Transportation.
Libya’s national oil company said it could restart oil exports after the North African country’s internationally recognized government in Tripoli announced a ceasefire, putting further pressure on oil prices.
“This is a market that can’t afford to absorb any additional barrels,” said John Kilduff, partner at Again Capital LLC in New York. “While I’m happy for them in striking a peace deal, it’s problematic for the global supply situation and so that’s a big part of today’s selloff.”
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