Oil fell below $43 a barrel on Friday as a resurgence of coronavirus cases raised concern that fuel demand growth could stall, although crude was still headed for a weekly gain on lower supply and wider signs of economicrecovery.
The United States reported more than 55,000 new coronavirus cases on Thursday, a new daily global record for the pandemic. The rise in cases suggested US jobs growth, which jumped in June, could suffer a setback.
"If this trend continues, oil demand in the region is at risk," said Louise Dickson of Rystad Energy.
OPEC oil production fell to its lowest in decades in June and Russian production has dropped to near its OPEC+ target.
The bankruptcy filing of US shale pioneer Chesapeake Energy also supported prices by raising expectations production will decline, JBC Energy said in a report.
Gasoline demand will be closely watched as the United States heads into the July 4 holiday weekend.