Amid the novel coronavirus outbreak in the world, Brent crude rose 18 cents, or 0.4%, to $42.98 a barrel after a 4.3% gain last week,
According to reports, U.S. West Texas Intermediate crude was at $40.42, down 23 cents, or 0.6%, from its previous settlement.
Economists are of the view that “There will be some kind of decline in demand if cases were to increase as people will stay at home,”
The implied volatility for Brent crude down to the lowest since prices started collapsing in March as some in the market remains focused on tightening supplies as production by the Organization of the Petroleum Exporting Countries (OPEC) fell to its lowest in decades with Russian output dropped to near targeted cuts.
On the other hand Libya’s oil exports expected to slide this month as forces opposed to the government continue to block shipments, adding to coordinated OPEC+ cuts, while data last week showed the American labor market rebounded in June.
However, an increase in U.S. virus cases has pushed global infections above 11.3 million, prompting concerns the recovery may be derailed.