Crude oil pares weekly drop on optimism over virus treatment

Bloomberg

Oil rebounded as a new virus treatment showed promising results, but rising Covid-19 cases continued to weigh on the market.
Oil gained 2.4% in New York, but is still down for the week. The market followed stocks higher after Gilead Sciences Inc. said its remdesivir treatment cut Covid-19 mortality risk by 62%. Still, the coronavirus pandemic is far from easing around the world and the International Energy Agency (IEA) said a jump in cases could derail the market recovery.
“If there’s one positive today concerning oil and the virus, it’s the news about remdesivir,” said Michael Hiley, head of over-the-counter energy trading at New York-based LPS Futures. “Still, you can’t help but try and dig into the new virus numbers that come out each day.”
Crude has struggled to extend a recent rally as traders weigh fresh outbreaks of the virus. California, Texas and Florida have recorded some of their biggest daily gains in cases and deaths this week. There’s a growing risk that a resurgence will impede
efforts to reopen the economy.
While the the IEA said demand should rebound sharply over the next three months as economic activity resumes, the agency also warned a flare-up of the virus, which is raging across several US states and re-emerging in Asia, is “casting a shadow over the outlook.”
Supply could also become more abundant as Libya’s National Oil Corp. announced it would lift force majeure on all exports following months of near-zero shipments.
The Kriti Bastion tanker has started loading 730,000 barrels of crude at Es Sider, with the cargo heading to Italy, according to port operator Waha Oil Co.