Oil pulls back from 1-week high after record surge in US coronavirus cases

Oil prices fell on Friday, pulling back from 1-week high that was hit yesterday, to head for the first loss in 5 days, on profit-taking and growing concerns over slowing US demand, after a record surge in new coronavirus cases.

US crude fell 0.75% to $40.05, after it opened at $40.35, and hit an intraday high of $40.48, and Brent crude fell 0.5% to $42.52, after it opened at $42.74, and hit a high of $42.96 .

The US crude gained 1.5% yesterday, posting its fourth daily gain, and hit a 1-week high of $40.73, and Brent futures gained 2% and hit the highest since June 23 at $43.21.

This came thanks to a drop in the US crude inventories, in a good sign of improved US demand after easing the coronavirus-lockdown.

But with coronavirus infection in the United States rising by more than 73,000 on Thursday, setting a new record for the third day in a row, fears of demand faltering again in the country.

However, coronavirus infections rose to more than 73,000 cases on Thursday in the US, the third straight record increase, which raised demand fears.

This could force the US government to tighten the quarantine measures again in order to contain the outbreak, which may also force the industrial and service activities to close for a longer period.