Oil prices fell on Friday, dragged down by concerns that a spike in COVID-19 cases in Europe and the United States is curtailing demand in two of the world’s biggest fuel consuming regions, while a stronger US dollar also pressured prices.
“Although we are unlikely to enter such deep lockdowns as in the pandemic’s first wave, we still see restrictions, and they do have an effect in every aspect of our lives, including fuel consumption,” said Rystad Energy analyst Paola Rodriguez-Masiu.
Crude also fell as the dollar headed towards its best week of the month.
A technical committee of the Organization of the Petroleum Exporting Countries (OPEC) and allied oil producers, a group know as OPEC+, ended their meeting on Thursday expressing concerns about a weak demand outlook.
OPEC+ is set to ease its current supply cuts of 7.7 million barrels per day (bpd) by 2 million bpd in January.