Oil prices fell, and Brent crude was about to record its first weekly loss in 7 weeks as demand for oil products in the power generation sector slowed amid falling coal and gas prices, while expectations of a warm winter in the United States also affected the market.
Brent crude futures fell 50 cents, or 0.6%, to $84.11 a barrel, with Asian markets closed, after falling $1.21 in the previous session.
Brent touched a three-year high of $86.10 on Thursday, but was on track to fall 0.9 percent this week, its first weekly decline since Sept. 3.
And US West Texas Intermediate crude futures fell 49 cents, or 0.6 percent, to $ 82.01 a barrel, after losing 92 cents yesterday.
“Oil saw some correction in commodity selling amid renewed fears of the coronavirus and expectations of a milder winter in the United States,” said Ravindra Rao, deputy head of commodity management at Kotak Securities.
The National Oceanic and Atmospheric Administration forecasts that winter weather in most parts of the United States will be warmer than average.
Oil markets hit multi-year highs this week on fears of coal and gas shortages in China, India and Europe, prompting a shift to diesel and fuel oil for power generation.