Oil Retreating From a 9-Month Peak on Demand Concerns as COVID-19 Cases Soar

Oil prices fell on Friday, but remained close to the nine-month peak they reached in the previous session, as rising Covid-19 cases put pressure on demand for fuel and US lawmakers are fighting over a $900 billion economic stimulus package.

US West Texas Intermediate crude futures fell 17 cents, or 0.4%, to $ 48.19 a barrel before the Tokyo Stock Exchange closed, while Brent crude futures fell 26 cents, or 0.5%, to $ 51.24 a barrel.

Today, Reuters’s statistics stated that more than 73.65 million people have been infected with the emerging coronavirus around the world, and that one million and 654 thousand and 920 have died.

Analysts say the soaring infections are leading to strict travel restrictions, putting pressure on fuel demand and market sentiment in the short term.

The two benchmarks rose yesterday, Thursday, thanks to optimism about progress in an aid bill to mitigate the repercussions of the Coronavirus, strong demand for refiners in Asia, and the drop of the US dollar to its lowest level in two and a half years.

Analysts say risk appetite continues to grow with the prospect of an imminent stimulus deal in the United States, which would help fuel demand, but lawmakers have yet to reach an agreement on Thursday evening.

The continued distribution of vaccines also helps protect the market from major slippages.