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TOKYO: Oil prices extended losses to more than 3% on Friday after US President Donald Trump said he had tested positive for the coronavirus, while a US stimulus package eluded negotiators amid from continuing concerns about demand.
Brent crude fell on the news and fell 1.47 cents, or 3.6%, to $ 39.4 a barrel at 0615 GMT. US oil was also down $ 1.40, or 3.6% cents, to $ 37.32.
US oil is heading for a nearly 6% drop this week, while Brent is on track to drop more than 7%, in a second straight week of decline for both contracts.
In a tweet, Trump said that he and first lady Melania Trump tested positive for COVID-19. Trump previously said that a quarantine process had begun after Hope Hicks, one of the top advisers, tested positive.
Oil was already in negative territory after a bipartisan deal for greater economic relief in response to the pandemic continued to elude House Speaker Nancy Pelosi and the White House, adding to fears of a worsening demand without further support for the economy.
“Oil remains the weakest link in the COVID headlines, reinforcing the view that anyone, even the commander and boss, is susceptible to the virus,” said Stephen Innes, chief global markets strategist at AXI, referring to to the president of the United States.
The news makes Democratic contender Joe Biden more likely to win the presidential election in just over a month, he said.
Crude supplies from the Organization of the Petroleum Exporting Countries (OPEC) in September increased by 160,000 barrels per day (bpd) from the previous month, a Reuters poll showed.
The increase was primarily the result of more supplies from Libya and Iran, OPEC members that are exempt from an agreement to withhold production between OPEC and Russia-led allies, a group known as OPEC +.
Libya’s production has risen faster than analysts expected with the relaxation of a blockade by the Libyan National Army, which is trying to seize control of the capital and is mainly based in the eastern part of the country, where they are located. many oil installations.
Libya’s crude production has risen to 270,000 bpd as the country ramps up export activity, a Libyan oil source told Reuters on Thursday.
New COVID-19 cases worldwide have risen to more than 34 million, nearly 2 million more than at the end of last week, according to Reuters figures.
This week marked the grim milestone of deaths that surpassed a million and several countries are tightening restrictions and contemplating closures as infections accelerate, raising concerns about the impact on fuel demand.
“Oil’s rise is always likely to be limited as fears about the global consumption outlook and rising OPEC + production mount,” said Jeffrey Halley, senior market analyst at OANDA. – Reuters
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