US West Texas Intermediate crude oil futures are trading almost flat on Friday as they head for their first of three weekly losses. The market is under pressure on both the demand and supply side, driven by the surge in coronavirus cases in the United States and Europe respectively, and Libyan production is increasing.
COVID-19 Update – Eurozone Trade Activity Declines
Several US states reported a record daily increase in infections on Thursday, raising concerns about future fuel demand, while France extended curfews for around two-thirds of its population as the second wave of the pandemic sweeps through Europe.
In related news, economic activity in the euro area declined in October with the return of restrictions on coronaviruses in the region, preliminary data showed on Friday.
The eurozone composite flash output PMI, which examines activity in the manufacturing and service sectors, fell to a four-month low in October at 49.4, from 50.4 in September. A reading below 50 represents a contraction in activity.
The latest figures show that the manufacturing sector has remained somewhat resilient over the past month, but activity in services has fallen to its lowest level in five months.
The latest figures coincided with a period of further restrictions in the euro area as it grapples with a second wave of coronavirus infections.
Libyan production on the rise
Libyan production, which had been mostly offline since January due to the unrest, reached 500,000 barrels …