Oil Posts Biggest Weekly Decline since July
(Bloomberg) -- Oil posted the biggest weekly decline since July as a rout in emerging markets raised concerns about weakening energy demand.
Futures in New York fell for a third straight session on Friday after a week-long slide in developing markets around the globe. The dollar advanced after American employers added more jobs than expected, diminishing the appeal of commodities priced in the greenback.
“This whole emerging market situation is sapping a lot of energy from commodity markets,” Bart Melek, head of global commodity strategy at TD Securities in Toronto, said by phone. “Risk appetites have waned somewhat. That’s not particularly good.”
The protracted trade dispute between the U.S. and China has cast a shadow over prospects for the economic growth that fuels energy demand. That bearish sentiment has been tempered somewhat by fears that U.S. sanctions against Iran may cripple supplies from OPEC’s No. 3 exporter.
West Texas Intermediate for October delivery fell 2 cents to settle at $67.75 a barrel on the New York Mercantile Exchange. Prices ended the week down 2.9 percent for the biggest weekly drop since mid July. Total volume traded was about 18 percent below the 100-day average.
Brent for November settlement rose 33 cents to $76.83 on the ICE Futures Europe exchange. The global benchmark crude traded at a $9.28 premium to WTI for the same month.
Some other key oil-market figures, news and events:
Gasoline futures rose 1.9 cents to $1.97 a gallon in New York. The MSCI Emerging Markets Index of equities extended losses from a January peak to just over 20 percent on Thursday, the threshold for a bear market. The index was up 0.3 percent on Friday. American wages unexpectedly climbed in August by the most since the recession ended in 2009 and hiring rose by more than forecast, keeping the Federal Reserve on track to lift interest rates this month and making another hike in December more likely. Airlines are starting to hedge against the risk that fuel prices could be driven higher by rules targeting the shipping industry’s environmental performance, lifting the price of crude futures for 2020. The crisis in emerging economies may affect oil demand but it won’t be a major factor and the International Energy Agency expects the market to tighten this year, putting upward pressure on prices.
To contact the reporters on this story: Alex Longley in London at alongley@bloomberg.net; Robert Tuttle in Calgary at rtuttle@bloomberg.net. To contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net Joe Carroll, Carlos Caminada.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- Libya's Surprise Oil Minister Change Throws Spotlight on Output
- Oil Seals Quarterly Gain in Tightening Market
- Oman Sees Increasing Ship-to-Ship Transfers of Russian Oil Bound for India
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension