Oil falls but remains set for biggest monthly gain in years - Reuters

Oil falls but remains set for biggest monthly gain in years - Reuters:

Oil prices were dragged sharply lower on Friday by weak U.S. fuel demand, fears of a second wave of coronavirus cases in South Korea and a worsening in U.S.-China relations, but were still on track for a hefty monthly gain.

July Brent crude LCOc1 fell $1.16, or 3.3%, to $34.13 a barrel by 0927 GMT while the more active August contract fell $1.11, or 3.1%, to $34.92. U.S. West Texas Intermediate (WTI) crude CLc1 was down $1.28, or 3.8%, at $32.43.

Both contracts were on course for their first weekly loss after for consecutive weeks of gains that leave them set for the biggest monthly gains in years thanks to production cuts and optimism over Chinese-led demand recovery, analysts said.

WTI is on track for a record monthly gain of 72% in May, with Brent set for a 35% increase that would represent its strongest monthly rise since March 1999.