Oil prices had been set for their worst weekly drop since the 2008 financial crisis, regardless of rising over 3% Friday, as investors worried over evaporating demand from the coronavirus pandemic and a production increase by top producers.
Brent crude was up $1.12, i.e., 3.4%, at $34.33 per barrel after tanking over 7% Thursday. For the week, Brent is set to dip about 24%, the most significant weekly drop since December 2008, when it slumped nearly 26%.
U.S. West Texas Intermediate (WTI) crude surged 1.17 cents, or 3.7%, to $32.66 per barrel after falling over $1 earlier in the session. WTI is set to plunge almost 21% this week, additionally the most since the height of the financial crisis.
As travel bans, canceled occasions and other financial disruptions eat into crude demand, major oil giants intend to add more crude to an oversupplied market.
A flood of low-priced oil from Saudi Arabia, the world’s largest exporter, and the UAE is mounting the pressure on prices after the fall of a price supporting settlement with Russia last week.
Russia, the world’s second-largest producer, does not seem willing to return to its agreement with OPEC.
Domestic oil producers met with Russian Energy Minister Alexander Novak on Thursday; however, it didn’t talk about returning to the agreement, with the chief of Gazprom Neft saying they plan to raise production in April.