Virus, Stimulus Jitters Sink Oil Prices

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 two cents to $41.93 U.S. a barrel, while Brent crude fell aiz 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.

Rising cases remain the key uncertainty for fuel demand growth and in turn oil prices, analysts said.

Analysts were also watching the lack of progress in the talks between the White House and Democrats over the next coronavirus stimulus package, with Democrats saying President Donald Trump may have to issue executive orders if he does not want to negotiate further.