Oil Posts Worst Week in Three With Demand Recovery in Focus - Bloomberg

Oil Posts Worst Week in Three With Demand Recovery in Focus - Bloomberg

• WTI for May delivery fell 28 cents to settle at $59.32 a barrel
• Brent for June declined 25 cents to end the session at $62.95 a barrel. The contract fell 2.9% over the week

Oil posted its worst week in three amid concerns that rising global coronavirus cases are slowing the economic recovery.

West Texas Intermediate futures ended the week down 3.5%, the biggest weekly loss since mid-March. With the Organization of Petroleum Exporting Countries and its allies planning to start raising output, markets are now focused on whether the demand recovery will be enough to absorb growing supplies.

While consumption is climbing in India and the U.S., rising virus cases and the possibility of stricter travel limits in Europe are muddying the forecast and putting pressure on crude. Oil plunged Monday after the U.K. said it may delay global travel beyond May 17.

“The Covid situation has really not had a strong recovery in Europe and across many emerging markets, and that’s really weighed down the demand outlook for oil,” said Edward Moya, senior market analyst at Oanda Corp.