Oil Prices Fall In Choppy Trade
Oil prices fell in choppy trade on Friday as worries linked to weak demand and excess supply pressured the market.
Benchmark Brent crude for July delivery fell about 2 percent to $25.95 a barrel despite OPEC and its allies led by Russia agreeing to reduce output by 9.7 million barrels per day (bpd) for May and June.
U.S. crude futures for June delivery were down 1.3 percent at $18.59 a barrel, after having gained 25 percent in the previous session.
The outbreak of coronavirus and the lockdowns imposed by nations to curb its spread has evaporated demand for oil, sending Brent crude prices down about 60 percent in 2020.
New coronavirus cases continued to surge, but the infection growth rate has slowed down in several countries, giving a sense of false comfort to some investors.
OPEC and its allies led by Russia had last month agreed to reduce output by 9.7 million barrels per day (bpd) for May and June. The output cuts to reduce the imbalance between supply and demand came into effect today.