Oil prices dipped as macroeconomic concerns came to the fore. Weekly data from the US Labor Department showed an increase in the number of Americans filing new jobless claims as the Covid-19 pandemic and associated attempts at contain- ing its spread continue to inflict a heavy toll. High unemploy- ment in the world’s largest oil market is not conducive to fuel demand, so the report served as a catalyst for a move lower. Equities sold off heavily on the news early in the session and oil followed suit before stabilizing. International benchmark Brent shed $1.02 per barrel last week to finish at $44.07/bbl Thursday, while US price-pin West Texas Intermediate lost $1.67/bbl to end the week at $41.37/bbl. Energy Information Administration figures released the previous day showing a fall in gasoline demand had already cut the legs out from under oil prices. Stuttering demand is especially threatening to global oil balances right now as Opec seeks to increase production, spot markets in key supply regions are moving slowly and contin- ued stockdraws are needed to keep support under the price. Crude tanks have fallen but refined products are still seriously oversupplied, especially jet fuel which has been the product hardest hit by Covid-19 travel disruptions.
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