Oil cools off highs as leaders’ comments reignite Covid-19 fears
Oil traded just below multi-year highs on Friday as Germany’s chancellor and the US Federal Reserve chairman said that demand disruptions from Covid-19 may not be over.
Brent crude futures rose 76 cents, or 0.89%, to $85.36 a barrel at 2:14 p.m. EST (1714 GMT) after Thursday’s three-year high of $86.10. The benchmark is set for its seventh weekly gain.
U.S. West Texas Intermediate (WTI) crude futures gained $1.13, or 1.4%, to reach $83.63 a barrel, not far off a seven-year high hit this week. The grade is heading for its ninth weekly rise.
“Supply is still very, very tight, the market is just cautious about the possibility of an uptick in COVID cases in Russia, China and now Germany,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.
