Oil prices headed for their biggest weekly decline since mid-May as the rise of Covid-19 squeezed concerns over global demand and uncertainty in the market due to OPEC+.
Brent crude futures traded around $ 73.15 a barrel and headed down 3% this week after two days of significant falls, the biggest weekly loss since May.
While US WTI traded at $ 71.35 a barrel and was on track for a decline of around 4% this week, the biggest weekly decline since March.
Talks on OPEC +’s production policy, ended without agreement this month after the United Arab Emirates (UAE) objected to expanding its output policy by April 2022.
However, the UAE and Saudi Arabia reached a compromise this week, to raise its production benchmark, allowing more oil supplies to be released into the market.
Meanwhile, the resurgence of the Covid-19 case continued to dampen the strengthening of oil prices, following fears that a recovery in demand would weaken again, as more sanctions were implemented.
