Oil prices see weekly decline as Covid surges in India and Japan

Loss caused by a steep rise in the number of infections in the world's third- and fourth-largest oil importers

Oil prices rose slightly but still headed for a weekly loss as support from European economic recovery was countered by concerns about the record surge of coronavirus infections in India.

Brent crude gained 25 cents, or 0.4%, to $65.65 a barrel, with US crude up similarly at $61.63.

Both benchmark crudes were headed for a weekly loss of more than 2% due to the resurgence of infections in India and Japan, respectively the world's third- and fourth-largest oil importers.

"This price consolidation follows a strong four-month price advance that was largely predicated on US vaccine progress that forced some upward revisions in global demand ideas across this year," said one analyst.

“The situation in India has everyone’s attention," said another: 

India is a significant international consumer of petroleum, and if the resurgence there permeates out to other countries as well it could further weigh on prices.

Oil has climbed by more than 25% this year, aided by the rollout of Covid-19 vaccines and vigilant supply management from OPEC and its allies. 

However, the bulk of crude’s advance came in the first two months of the year, and prices have struggled since. 

Opec+ is set to start easing deep supply curbs from May, and the group is expected to hold a full ministerial meeting next week to assess the global state of play.

• Reuters and Bloomberg