TOKYO (Reuters) – Oil prices extended declines on Friday, under pressure from a surprise rise in U.S. stockpiles and ongoing weak demand from the coronavirus pandemic.
Brent crude was down 8 cents, or 0.2%, at $39.98 a barrel by 0110 GMT, after falling nearly 2% on Thursday, while U.S. crude was off by 2 cents at $37.28 a barrel, having fallen 2% in the previous session.
Both major benchmarks were headed for a second week of declines.
In the United States, stockpiles rose last week against expectation as refineries slowly returned to operations after production sites were shut down due to storms in the Gulf of Mexico and wider region.
“Crude production is starting to return following a couple of storms, but a weak demand outlook and the start of maintenance season will keep the pressure on oil prices,” said Edward Moya, senior market analyst at OANDA.
