Oil fell below $38 a barrel amid a surging virus, dollar strength and a lack of clarity from the US election, but was still headed for a weekly gain on signs the OPEC+ alliance will delay easing production cuts.
US crude futures dropped 2.2% Friday, but are still up around 6% for the week. Joe Biden appeared to be on the brink of claiming a victory in the presidential race, but he will probably have to deal with a split Congress. That will make it more difficult to pass a big anti-virus spending package or enact an agenda aimed at moving the US away from fossil fuels. Recounts and legal challenges may also lead to a prolonged period of uncertainty.
Saudi Arabia and Russia, the leading OPEC+ countries, are pressing other members to extend current supply cuts into next year, instead of the current plan to ease in January.