[ad_1]
TOKYO: Oil prices extended losses to fall around 2 percent on Friday (October 2) after US President Donald Trump tested positive for the coronavirus while a US stimulus package evaded to negotiators amid continuing concerns about demand.
Brent crude fell on the news and was down 78 cents, or 1.9 percent, at $ 40.53 a barrel at 0516 GMT. US oil was down 79 cents, or 2%, to $ 37.93.
US oil is heading for a drop of more than 5 percent this week, while Brent is on track to fall more than 4 percent, in a second consecutive week of falling 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.
“The main culprit appears to be the lack of a new US stimulus package, reflecting the disappointment seen in other asset classes,” said Jeffrey Halley, Senior Market Analyst at OANDA “
“The rise in oil is always likely to be limited, as fears about the global consumption outlook and rising OPEC + production mount,” he added.
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.
