Oil slides 1% on weak demand, on track for biggest weekly drop since June

Oil futures slid 1% on Friday, with prices on course for their steepest weekly drops since June. This came just as weak demand and sizable fuel supplies offset support from a weak dollar.

Brent crude lost 44 cents to $43.63 per barrel. U.S. West Texas Intermediate fell 43 cents to $40.94 per barrel, on course for its first weekly drop in five weeks.

The volume of crude exports to China is set to slow down in September after climbing for five months as refiners focus on reducing inventories.

Meanwhile, U.S. refiners with ample diesel inventory are unlikely to increase production soon. Singapore’s middle distillates inventories hiked above a 9-year high.

Analysts say that rising global coronavirus cases and reimposed lockdowns will crash hopes for a decline in oil stocks in the meantime. Refiners are expected to keep operating rates low.