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Crude oil futures settle sharply lower on Friday

14 Nov 2020 Evaluate

Crude oil futures settled sharply lower on Friday on concerns over excess supply and a weak outlook for energy demand due to rising coronavirus cases across the world. Europe is already grappling with a sharp increase in infections and new social restrictions, while the United States again shattered records on Thursday, reporting more than 153,000 new coronavirus cases. It is feared that rising Covid cases will continue to hold back an economic recovery, including fuel demand. Meanwhile, a report from Baker Hughes this afternoon showed the number of active US rigs drilling for oil rose by 10 to 236 this week, rising for an eighth successive week. The total active US rig count, meanwhile, was up 12 to 312, according to Baker Hughes.

Crude oil futures for December fell $0.99 or about 2.4 percent to settle at $40.13 a barrel on the New York Mercantile Exchange. However, January Brent crude slipped $0.75 or 1.7 percent to settle at $42.78 a barrel on London's Intercontinental Exchange.

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