Oil prices slip on uncertainty over US recovery, stimulus, rising Covid-19

MELBOURNE (Reuters) – Oil prices slipped on Friday, adding to losses in the previous session, on worries that fuel demand growth will drop amid a resurgence of coronavirus cases and as talks have stalled in the United States on a new stimulus deal.

U.S. West Texas Intermediate (WTI) crude futures slipped 2 cents to $41.93 a barrel at 0246 GMT, while Brent crude fell 6 cents, or 0.1%, to $45.03, after both contracts had earlier traded higher.

However, WTI and Brent are both set for weekly gains of at least 4%, the most for the two benchmark contracts since the week ending July 3.

The resurgence of coronavirus infections remains the main uncertainty in the oil market, as that will determine how fast fuel demand rebounds. Tallies show infections in the United States are rising in a number of states, including Colorado, Ohio and Virginia.