Brent Crude futures were 14 cents lower at $40.9. WTI Crude futures fell 23 cents, or 0.6% to settle at $38.49 per barrel. Brent was on track for a weekly decline of 3.1% and U.S. crude was headed for a weekly drop of 3.6%, after record U.S. crude inventory data dragged prices down on Wednesday. Earlier gains, supported by optimism over rising road traffic boosting fuel demand, were erased in early U.S. trading on fears that spiking COVID-19 infections in large gasoline-consuming U.S. states could stall the demand recovery. Cases have risen sharply in California, Texas and Florida, the three most populous U.S. states.
Friday morning, Texas Governor Greg Abbott reversed the state’s reopening plan, ordering most bars to close due to the surge in cases. That could undermine the steady increase in refining output, with U.S. refiners now operating at nearly 75% of their capacity, per official government data. “Employers are delaying the return of their employees back to the office and that will impact the return of gasoline demand,” said Andrew Lipow, president of Lipow Oil Associates.