Oil extends losses after Trump tests positive for COVID-19

By Sheldrick Aaron

TOKYO (Reuters)-On Friday after the United States, oil prices extended losses to about 3%.

President Donald Trump said that he screened COVID-19 positive, though aggravation on the U.S. stimulus plan escapes negotiators in continuing demand worry.

Brent oil was down $1.12 or 2.7 percent on reports from Trump at $39.81 a barrel by 0710 GMT.

U.S. oil also dropped from $1.12, or 2.9%, to $37.60.

For a second straight week of declines, the US and Brent cruse are headed for declines of about 5 and 6 percent respectively.

In a post, the trump checked positive for COVID-19 along with First Lady Melania Trump.

Following a bipolar agreement to further economic stimulus in reaction to the pandemic, oil had already been pessimistic, continuing to elude House Chairman Nancy Pelosi and the White House, adding concerns that demand would deteriorate, without further economic assistance.

"It was still a depressed market and it incident came along and gave people some confusion and pause to say 'You know what, I'm taking some risk from the table'," said Lachlan Shaw, National Australia Bank Commodity Analysis Head of Melbourne.

Crude supplies of the OPEC increased by 160,000 barrels daily (bpd) from 1 month previously by September, according to a survey conducted by Reuters.

Growing imports from Libya and Iran, OPEC representatives who are excluded from a supply deal between OPEC and Russia's allies-a party known as OPEC+-is responsible in particular for this rise.

The output of Libya has increased faster than anticipated by the analysts after the Libyan National Army relaxed the blockade.

Its crude production increased to 270,000 bpd, as a Libyan oil source reported Thursday to Reuters, a nation that is expanding its export operations.

New COVID-19 cases worldwide, based on the Reuters Tallies, have risen to more than 34 million , up almost 2 million from last week's end.

The awful landmark of 1 million deaths this week is expanding and many countries are suggesting lock-downs as diseases are accelerating, causing fears about the effect on fuel demand.

"With concerns of global demand and increasing supply from OPEC+ increasing, the oil spillage would still be minimal," said Jeffrey Halley, OANDA Senior Market Analyst.

(Aaron Sheldrick's report; Richard Pullin 's version and David Goodman's report)