Oil prices fell nearly 1% on Friday, extending losses into a second day as rising production of crude comes amid a worsening Covid-19 pandemic which threatens to bring more restrictions on movement and consumption that will likely hit demand for fuel.
Brent crude was down 36 cents, or 0.9%, at $40.57 a barrel at 0055 GMT, after falling more than 3% on Thursday. US oil was also 36 cents, or 0.9%, lower at $38.36, having fallen nearly 4% in the previous session.
US oil is heading for a drop of nearly 5% this week, while Brent is on track to fall more than 3%, in a second consecutive week of decline for both contracts.
“The fundamentals of oil are not encouraging … as supply rises and demand prospects look bleak,” ANZ Research said in a client note.
