Brent hits first weekly drop in seven weeks
Forecasts for warm US winter weigh on oil prices. Coal slackening, gas prices prevent fuel-to-oil transition
Oil prices fell on Friday. Brent saw its first weekly decline in seven weeks as demand for oil products in electricity production calmed down amid the slack in coal and gas prices, while expectations of a mild US winter also weighed on the market.
Brent crude futures fell 48 cents, or 0.6%, to $84.13 a barrel at 0502 GMT, extending the $1.21 drop from the previous session.
Brent touched a three-year high of $86.10 on Thursday, but is on track to record its first weekly drop since Sept.
West Texas Intermediate (WTI) crude futures fell 37 cents, or 0.5%, to $82.13 a barrel, after losing 92 cents on Thursday.
Winter weather in most of the United States is expected to be warmer than average, according to the National Oceanic and Atmospheric Administration forecast.
Crude oil came under some selling pressure among commodities amid renewed virus concerns and forecasts for a milder winter in the US.
The market spurred a switch to diesel and fuel for electricity, hitting the highs of several years earlier this week amid concerns about coal and gas shortages in China, India and Europe.
Crude oil's sharp rise makes it vulnerable to profit making, but a major correction may not occur unless the global energy crisis subsides.
Global gas and coal prices have eased, but concerns remain due to the shrinking market and high demand with the winter season approaching.
US crude found support earlier this week, with low crude inventories at the major Cushing storage center in Oklahoma. Data Wednesday from the U.S. Energy Information Administration (EIA) showed that crude inventories in Cushing fell to 31.2 million barrels, their lowest level since October 2018.
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