U.S. Crude Plunges 7% on Week on Demand Anxiety

Commodities & Futures
© Reuters.  © Reuters.

By Barani Krishnan

Investing.com – It was great while it lasted, but the $ 40 support for U.S. crude may be something more elusive for the oil bull for now.

With the extended Labor Day holiday weekend symbolically bringing an end to the peak U.S. summer driving season, a familiar old theme seems to be making its rounds in the oil market: There may be more supply and less demand hereon.

And it’s all coming at the wrong time for crude bulls — just as global producer alliance OPEC decides to scale back on production cuts, the turns mighty to weigh on commodity prices and on Wall Street tumble in a broad aversion of risk.

While the U.S. August jobs report came within expectations, continued anxiety over the coronavirus and how quickly — or otherwise — a vaccine is delivered to the market was holding up confidence across markets, analysts said. Even , the traditional safe-haven, couldn’t muster a rally. Surging , meanwhile, didn’t help the dollar.

New York-traded , the benchmark for U.S. crude futures, settled the day down $ 1.60 cents, or almost 4%, at $ 39.77 per barrel. For the week, WTI slumped 7.4%, its biggest weekly drop since June.

London-traded , the bellwether for global crude prices, closed the New York session down $ 1.41, or 3.2%, at $ 42.66. For the week, Brent lost 5.3%. Like WTI, it was Brent’s biggest drop in a week since June.

“Crude prices can’t shake off the strong dollar,” Ed Moya, an analyst at New York’s OANDA, said, adding that oil could remain in the red if the global stocks rout continued.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Commodities & Futures News

Leave a Reply

Your email address will not be published. Required fields are marked *