Oil rises on U.S., Europe demand hopes

Oil prices climbed on Friday in hopes of a U.S. and European fuel demand recovery on easing lockdowns and faster economic growth. However, worries about India’s worsening second COVID-19 wave capped gains. 

Brent crude futures gained 0.3%, or 21 cents, at $65.61 per barrel, following an 8-cent rise on Thursday. U.S. West Texas Intermediate crude futures surged 0.5%, or 29 cents, at $61.72 per barrel, after gaining 8 cents in the last session. 

U.S. refiner Valero said that gasoline and diesel demand returned to 93% and 100% of the levels they were at prior to the pandemic. Lower new COVID-19 cases also supported sentiment.

Still, both contracts are on course for a weekly loss of about 2% on worries about dropping demand in India, where daily new cases and COVID-19 deaths hit new records this week. 

Australia, Canada, U.A.E., and U.K. all barred flights from India.