Oil prices on track for weekly fall on worries over COVID-19 impact on crude demand

Oil futures lost ground Friday, leaving both major benchmarks on track for their third weekly decline in four weeks as worries about the demand outlook grow in response to rising COVID-19 cases.

“Investors have become more cautious this week in general…as recent increases in coronavirus cases has increased questions over what a second wave could mean for the world economy and resource demand,” Colin Cieszynski, chief market strategist at SIA Wealth Management, told MarketWatch.

A rebound in the U.S. dollar this week has also weighed on dollar-denominated oil prices, he said. The ICE U.S. Dollar Index
DXY,
+0.34%

 was up around 1.9% for the week.

West Texas Intermediate crude for November delivery
CL.1,
-0.54%

 
CLX20,
-0.54%

 fell 40 cents, or 1%, to $39.91 a barrel on the New York Mercantile Exchange following a similar rise a day earlier.

Front-month November Brent
BRNX20,
-0.38%

 fell 26 cents, or 0.6%, to $41.68

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