Coronavirus: Oil on a two-week recovery streak

New York - 'Production cuts and soft reopenings all over the place are having the desired effects'

Oil prices rose about 2 per cent on Friday and were on course for a second consecutive week of gains as US producers rapidly shut crude production and more states moved ahead with plans to relax lockdowns intended to prevent the spread of the worst public health crisis in a generation.

US and Brent benchmarks have rallied sharply this week as countries have eased coronavirus-related lockdowns and fuel demand has rebounded modestly. Oil production worldwide is also declining to reduce a growing supply glut.

Brent futures rose $1.02, or 3.4 per cent, to $30.74 a barrel by 1510 GMT, up about 16 per cent so far this week. US West Texas Intermediate crude rose $1.78, or 7.4 per cent, to $25.77, on track for its highest close since April 6 and up more than 30 per cent this week.

"Production cuts and soft reopenings all over the place are having the desired effects," said Craig Erlam, senior market analyst at Oanda Europe.

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