Oil prices were down near 1% to $42.3 a barrel on Friday, after falling more than 2.5% during the session amid mounting concerns over fuel demand recovery.
The latest PMI data showed a loss of growth momentum in private sector activity in Germany, France and Australia amid renewed restrictions due to a resurgence of coronavirus cases.
In addition, India’s crude oil imports fell in July to its lowest in over a decade. Moreover, an internal report by the OPEC+ showed it expects oil demand to fall by 9.1 million bpd in 2020, 100,000 bpd more than in its previous forecast, and if a prolonged second wave of infections hits China, India, Europe and the US in the second half of the year, demand could drop by 11.2 million bpd.
The report also showed that some members would need to cut production by 2.31 million barrels per day to make up for their recent oversupply. Still, for the week, WTI crude gained near 0.6%, the 3rd consecutive week of gains.