Oil prices fell about 3% below $80 a barrel on Friday, as a new surge in COVID-19 cases in Europe threatened to slow the pace of economic recovery. Investors are also considering the possibility of major world economies tapping into their strategic crude reserves to calm energy prices. Brent crude futures fell by $2.35 or 2.9% to settle at $78.89 per barrel. West Texas Intermediate crude for December delivery dropped by $2.91 or 3.6% to settle at $76.10 per barrel. Meanwhile, January crude futures fell by $2.65 or 3.4% to $75.78 per barrel. Both crude benchmarks posted losses for the fourth consecutive week, marking the first time since March 2020.
Austria became the first country in Western Europe to reimpose full lockdown measures this fall against the backdrop of a new wave of infections threatening the economic recovery witnessed in recent months. Germany, the largest economy in Europe, has also indicated that it might implement a full lockdown to combat COVID-19.
Brent crude has risen nearly 60% this year as economies recover from the pandemic and the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have gradually increased production. Governments of some of the world's largest economies are considering tapping into their strategic oil reserves at the request of the United States as a coordinated move to ease prices. The White House stated on Friday that OPEC must meet the global demand for oil with "sufficient" supplies when it holds its next meeting on production policy on December 2.
