(MC)
Oil prices fell 3 percent on Friday after US President Donald Trump tested positive for COVID-19, roiling risky assets, and as rising global crude output threatens to overwhelm the market’s weak recovery.Benchmark Brent and US crude were both headed for a second straight week of losses. The uncertainty surrounding the US president’s health added to a series of jitters, including a lackluster US unemployment report and increased supply from major world oil producers.
“It’s been a rough week – and now the president’s diagnosis sends a shudder through markets,” said John Kilduff, partner at Again Capital in New York. “The COVID-19 pandemic has weighed more on the oil market than any other asset class. This is a worst-case scenario for the oil market.” Brent crude was down $1.12, or 2.7 percent, at $39.81 a barrel by 11:32 a.m. EDT (1532 GMT), after earlier touching a session low of $38.79 a barrel. US oil was down $1.04, or 2.7 percent, at $37.67 a barrel.