Oil rebounded as a new virus treatment showed promising results, but rising Covid-19 cases continued to weigh on the market.
Oil gained 2.4% in New York on Friday, but is still down for the week. The market followed stocks higher after Gilead Sciences Inc. said its remdesivir treatment cut Covid-19 mortality risk by 62%. Still, the coronavirus pandemic is far from easing around the world and the International Energy Agency said a jump in cases could derail the market recovery.
“If there’s one positive today concerning oil and the virus, it’s the news about remdesivir,” said Michael Hiley, head of over-the-counter energy trading at New York-based LPS Futures. “Still, you can’t help but try and dig into the new virus numbers that come out each day.”
Crude has struggled to extend a recent rally as traders weigh fresh outbreaks of the virus. California, Texas and Florida have recorded some of their biggest daily gains in cases and deaths this week. There’s a growing risk that a resurgence will impede efforts to reopen the economy.
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