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Oil Set for Weekly Loss

Oil Set for Weekly Loss Oil Set for Weekly Loss

Crude oil prices fell on Friday on weak economic indicators from the United States and Germany, shrugging off tensions around Iran and this week’s decision by OPEC and its allies to extend a supply cut deal until next year.
US West Texas Intermediate crude futures were down $0.79 at $56.55 per barrel. There was no settlement price on Thursday because of the Independence Day holiday in the United States, CNBC reported. 
Front-month Brent crude futures were down $0.23 at $63.07 per barrel. Both benchmarks were set for their biggest weekly falls in five weeks. 
“Oil prices eased lower on Friday morning as concerns over global economic growth offset escalating geopolitical tensions in the Middle East,” RBC analysts said in a note. 
Weak industrial demand gave a bearish signal for oil demand. 
German industrial orders fell far more than expected in May and its Economy Ministry warned on Friday that this sector of Europe’s largest economy was likely to remain weak in the coming months. 
In the United States, new orders for factory goods fell for a second straight month in May, government data showed on Wednesday, stoking economic concerns. 
The US Energy Information Administration on Wednesday reported a weekly decline of 1.1 million barrels in crude stocks, much smaller than the 5 million barrel draw reported by the American Petroleum Institute earlier in the week and analyst expectations. 
Giving a floor to prices was this week’s commitment to cut production from the world’s largest exporters, including members of the Organization of the Petroleum Exporting Countries and other producers such as Russia, a grouping known as OPEC+.

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