Oil up, but heads for largest weekly loss since March on demand worries | Reuters

Oil up, but heads for largest weekly loss since March on demand worries | Reuters

Oil prices extended gains on Friday, but remained on track for their biggest weekly decline since March as travel restrictions to curb the spread of the COVID-19 Delta variant are raising concerns about fuel demand.

Brent crude oil futures were up 47 cents at $71.76 a barrel at 0640 GMT while U.S. West Texas Intermediate (WTI) crude futures rose 45 cents to $69.54 a barrel, but both contracts have given up 6% this week, the most since March.

"The price action we see now is really a function of the macro picture," said Howie Lee, an economist at Singapore's OCBC bank.

"The Delta variant is now really starting to hit home and you see risk aversion in many markets, not just oil."

Japan is poised to expand emergency restrictions to more prefectures while China, the world's second-largest oil consumer, has imposed curbs in some cities and cancelled flights, threatening fuel demand. read more