Oil loses over 1% on global demand concerns
Oil prices fell over 1% in American trade on renewed concerns over global demand while the second wave of the coronavirus continues to ravage Europe and the EU, while hopes for US stimulus fade.
US crude fell 1.2% to $40.31 a barrel, while Brent declined1.4% to $42.42 a barrel, after a session-high at $43.20.
US crude lost 0.7% yesterday while Brent declined 1%, the first loss in three days.
Concerns over a second coronavirus wave are weighing on energy markets with governments announcing new shutdown measures.
US Treasury Secretary Steven Mnuchin almost ruled out expanding stimulus before elections due to disagreement with Democrats on priorities.
The Energy Information Administration reported a drawdown in crude commercial stocks by 3.8 million barrels in the week ending October 9.
According to the data, total stocks fell to 492.4 million barrels, the lowest since the week ending April 3.
The Delta hurricane stopped over 90% of Mexico Gulf production in the US, leading to a 500 thousand bpd cut in US production.
Europe climbs from two-week low on automobile recovery
European stocks rose on Friday off two-week lows and on track for the first profit in four days as automobile stocks rallied while markets remain headed for weekly losses on Covid second wave concerns.
Dow Jones Stoxx Europe 600 rose 1.1% as of 10:28 GMT after closing down 2.1% yesterday.
The Stoxx climbed from two-week lows with most sectors firmly in the green.
Automobile stocks led the gains with a 2.5% surge after Daimler beat profit forecasts in the third quarter.
For the week, the Stoxx is down 1% on track for the first weekly loss in three.
US Treasury Secretary Steven Mnuchin almost ruled out expanding stimulus before elections due to disagreement with Democrats on priorities.
The French government announced another health emergency after daily Covid infections surpassed 9000 for the first time since June 25.
S&P 500 futures rose 0.5% after closing down 0.15% yesterday.
In Europe, the Euro Stoxx 50 rose 1.3%, while France's CAC 40 rallied 1.7%, as Germany's DAX rose 1%, while London's Financial Times 100 rose 1.25%.
Silver climbs for second straight day
Silver rose in European trade for another session on haven demand while still on track for a weekly loss as dollar gained ground.
Silver rose 0.75% to $24.47 an ounce, after closing up 0.6% yesterday away from week lows at $23.56 an ounce.
Silver's gains on Friday came on haven demand as risk mounted over a second wave of the coronavirus and fading hopes for US stimulus.
Silver is still down 2.6% so far this week on track for the first weekly loss in three as dollar gained ground against dollar.
