Oil prices drop as OPEC+ slashes cuts, coronavirus cases weigh on sentiment

16.10.2020 - Davydova Maria
Oil prices drop as OPEC+ slashes cuts, coronavirus cases weigh on sentiment

Oil prices dropped on Friday on worries that major producers will continue with plans to lessen supple cuts despite a surge in U.S. and European COVID-19 cases curbing fuel demand.

Brent crude futures fell 0.5%, or 22 cents, at $42.94 per barrel. U.S. West Texas Intermediate crude futures for November contract dropped 0.4%, or 16 cents, at $40.8 per barrel. 

Both benchmarks slid in the last session but are on course for small gains for the week.

OPEC+ is planning to slash its supply cuts of 7.7 million bpd by 2 million bpd in January. 

However, the bleak demand outlook and increasing supply from Libya may mean OPEC+ will have to maintain the existing cuts into next year.

In Europe, several countries have reimposed curfews and lockdowns to control a second surge of coronavirus cases. Britain has implemented stronger restrictions in London on Friday.

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