Oil drops to week low on global demand concerns

Oil prices fell on Friday, to deepen losses for the second straight daily loss, and hit a week low on global demand concerns, after the coronavirus-linked restrictions were renewed in the US and other countries. 

US crude fell 2.1% to the lowest level since June 29 at $38.74 a barrel, after a session-high of $39.78, while Brent shed 1.9% to $42.34 a barrel from a high of $42.54. 

US crude lost 3.1% yesterday, and Brent fell 2.3%, posting the second loss in 3 days, on US oversupply concerns. 

Reuters reported that the US coronavirus infections saw a spike by more than 60,500 new cases of on Thursday, which is a new daily record.

Consequently, this forced the authorities in many US cities and states to delay reopening many economic activities.

Government authorities in Australia locked down the second most populous city, Melbourne, after a surge in coronavirus infections.

The Australian government will also decide today on reducing the number of citizens allowed to return from abroad, especially from the US, Brazil and India.

This renewed concerns about the global demand, which saw a relative recovery recently, after the end of the coronavirus lockdown measures in many Asian and European countries.