Oil prices drop nearly 3 percent on slow COVID-19 recovery

NEW YORK: Oil prices dropped nearly 3 percent on Friday as the economic recovery international has run into stumbling blocks due to easing COVID-19 lockdowns, even as major global crude producers limit crude supply.

As per details, Brent crude LCOc1 futures were down $0.52, or 1.1%, at $44.38 a barrel by 0850 GMT, heading for a 0.9% weekly decline.

US West Texas Intermediate (WTI) crude CLc1 futures were down $0.48, or 1.1%, at $42.34 however, on track for a weekly gain nearly 0.9%.

The euro zone’s economic recovery from its deepest downturn on record has stuttered this month as the pent-up requirement set free by the easing of lockdowns in July has dwindled, a survey showed on Friday.

India’s crude oil imports fell in July to their lowest since March 2010 amid renewed COVID-19 lockdowns and refinery maintenance.

Consultancy Rystad Energy said in a note “Demand, in our view, is only likely to near pre-pandemic levels in 2021 and the rest of 2020 will be a muted effort while facing the effects of the second wave.”

Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) and allies including Russia were focused on ensuring that members who had overproduced against their commitments would reduce their output.