Oil rises, but ends wild week lower as coronavirus slashes fuel demand

Oil prices rose on Friday, bringing an end to another week of losses that featured the U.S. contract plunging to minus $40 a barrel, as global production cuts could not keep pace with the collapse in demand caused by the coronavirus pandemic.
Oil trading was extremely volatile all week, in an extension of the selling that has dominated trading since early March as demand collapsed 30% due to the pandemic.
While certain fundamental factors, such as a sharp fall in active drilling rigs in the United States, were nominally bullish for oil prices, the positive effects of those moves are months down the road.
“It was a totally brutal week,” said Todd Staples, president of the Texas Oil & Gas Association trade group. “The volatility we saw with negative pricing was to the extremes.”
Brent futures LCOc1 rose 11 cents, or 0.5%, to settle at $21.44 a barrel, while U.S. West Texas Intermediate crude CLc1 rose 44 cents, or 2.7%, to close at $16.94.
Oil futures marked their third straight week of losses, with Brent ending down 24% and WTI off around 7%.
Traders expect demand to fall short of supply for months due to the economic disruption caused by the pandemic. Producers may not be slashing output quickly or deeply enough to buoy prices, especially when global economic output is expected to contract by 2% this year, worse than the financial crisis.

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