Oil prices rebounds from record lows amid looming headwinds from the pandemic

Oil traded higher on Friday, further reclaiming lost ground from three-week lows in the previous session as the COVID-19 situation continued to dent the global economy as well as oil consumption.

Brent crude gained 0.3%, trading at $43.08 per barrel by 11:58 PM ET (0358 GMT), on course for a four-month high. It closed 1.9% lower on Thursday, though it had almost fully rebounded from its lowest since July 10.

U.S. Crude headed for its third-month high, trading higher by 0.5% to $40.13 per barrel after it had plunged 3.3% in the previous session.

However, oil demand still faces headwinds as a second resurgence of the COVID-19 pandemic continues to ravage the global economy.

The Organization of the Petroleum Exporting Companies and its allies (OPEC+) have agreed to increase oil output on Saturday onwards, adding around 1.5 million barrels a day to global supply.