Picture used for illustrative purpose. File

Gulf Today Report

Oil prices slumped on Friday as doubt for slow economic recovery increases, but the market still recorded a second-week gain.

Brent crude was down 51 cents, or 1.2%, at $43.02 a barrel as of 0741 GMT, after dropping 0.6% on Thursday. US West Texas Intermediate (WTI) crude futures fell 66 cents, or 1.6%, to $40.46 a barrel, having lost 0.8% on Thursday.

For the week, both were headed for a surge of about 9%. 

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According to US government data, crude inventories jumped by 4.3 million barrels last week.

Koichi Murakami, an analyst at Daiichi Commodities Co Ltd said, “Investors took profits from the recent rally as a gloomy global economic outlook dampened sentiment amid a sharp increase in coronavirus cases and new social restrictions.”

Pfizer Inc and Germany’s BioNTech announcement of a 90% effective vaccine has rekindled hope. That has increased WTI and Brent contracts this week.

However, the International Energy Agency (IEA) on Thursday said, until late into 2021, COVID-19 vaccine might not uplift oil demand.