Oil Edges Higher Recording Large Weekly Decline amid Uncertainty

Oil prices saw a modest increase on Friday but to failed to recovery its large weekly losses, the biggest in about two months, which are mostly due to uncertainty about a new production policy agreement by the OPEC+ alliance, despite recent reports suggesting extending the current deal until the end of next year.

In addition, a slump in demand for gasoline in the U.S., as evident by the increase in inventories last week, and broader concerns about economic recovery from the coronavirus pandemic with the spread of the coronavirus pandemic are also weighing on crude prices, with markets focused on reflation fears.

Brent crude futures for September delivery added 12 cents, or 0.16%, to close at $73.59 per barrel, losing $1.96, or 2.59%, for the week, in the biggest weekly drop for the global benchmark most active contracts since the week ending May 21, according to data by Dow Jones.

Meanwhile, the West Texas Intermediate (WTI) futures increased today by 16 cents, or 0.22%, to settle at $71.81 a barrel. On a weekly basis, the Nymex futures lost $2.75, or 3.69%, in its largest loss since late March.

Today’s rise came after two consecutive sessions of decline for both the Brent and U.S. crude futures.