Oil prices slip from six-week high as India's demand worries weigh | Reuters

Oil prices slip from six-week high as India's demand worries weigh | Reuters

Oil prices slipped on Friday, taking a breather after touching their highest in six weeks as concerns of wider lockdowns in India and Brazil to curb the COVID-19 pandemic offset a bullish outlook on summer fuel demand and economic recovery.

Brent crude fell 31 cents, or 0.5%, to $68.25 a barrel by 0630 GMT, the last day’s trading for the front-month June contract. U.S. West Texas Intermediate crude for June was at $64.59 a barrel, down 42 cents, or 0.7%.

Prices also came under pressure after China’s factory activity growth slowed and missed forecasts in April, although a private sector survey showed that Japan’s factory activity expanded in April at the fastest pace since early 2018.

“The post-COVID-19 demand recovery is still uneven and the surge in Indian cases serves as a timely reminder that any rally to $70 is too premature,” Energy Aspects analysts said in a note.

Such a level is likely to be reached only in the third quarter this year, when demand improves materially and destocking ends, they said.