Oil retreated from a five-week high on concern that relaxing virus lockdowns too early will lead to a resurgence in cases and derail a nascent recovery in energy demand.
Futures in New York followed equities lower, dropping about 2% from the highest settlement since early April. Anthony Fauci, America’s top infectious disease official, said U.S. states reopening too quickly could derail an economic recovery. China’s return from restrictions suffered a setback after new cases emerged in Wuhan — the epicenter of the outbreak — prompting an order for the entire population of 11 million to be tested.
A fresh wave of virus cases would threaten a fragile recovery. U.S. Energy Secretary Dan Brouillette said the country’s battered oil industry was on its way back, while the American Petroleum Institute reported a drop in stockpiles at the storage hub of Cushing, which could be the first decline since February.
