Oil prices fell on Thursday as COVID-19 cases continued to spike in the U.S., which the IEA  highlighted as a major threat to oil markets in today’s report, but prices were quick to return to the $40 mark on Friday. Oil posted a price correction on Thursday on fears of the rising coronavirus numbers in the U.S., something that the IEA warned about in its latest Oil Market Report out today. In early trading, prices firmed up, with WTI holding onto $40 per barrel.

IEA raises demand forecast; warns about risk. The IEA hiked its demand forecast for 2020 but also warned that the spreading coronavirus in the U.S. poses downside risks. The agency said demand could be 400,000 bpd higher than previously thought this year due to a rapid bounce back in many economies around the world, particularly in China and India. Also, oil supply fell by 2 mb/d in June, further tightening the market.

COVID hits Texas refineries. Marathon Petroleum’s (NYSE: MPC)Galveston Bay refinery in Texas City, the second-largest refinery in the country, has over 100 confirmed cases of Covid-19, according to Bloomberg. At least four other refineries have also reported positive cases.

Texas drilling permits fall by 69 percent. The Texas Railroad Commission approved 312 new drilling permits in June, down from 1,001 in May.

More U.S. oil coming back. Houston-based Noble Energy plans to bring back by the end of July most of the oil production it had curtailed in the second quarter. Overall, U.S. oil production held steady in the most recent EIA data at 11 mb/d.