Oil prices threaten strong weekly loss - worries about demand weigh on the price

AtlantisFX | Oil prices threaten strong weekly loss - worries about demand weigh on the price

AtlantisFX | Crude oil prices are mixed on Friday, but they are on course for a strong weekly loss. Concerns over demand more than offset the optimism surrounding the extension of OPEC's targeted funding cut and continued tensions in the Middle East.

In New York, West Texas Intermediate crude oil futures traded at up to 7:51 am ET (11:51 GMT) by 43 cents, or 0.8% lower at $ 56.91 a barrel, while Brent crude oil futures, the benchmark for oil prices outside the US rose 29 cents or 0.5% to $ 63.59.

WTI fell 3.2% this week, while Brent fell 4.4% in the last 7 days.

German industrial orders fell 2.2% in May, averaging -8.6% on an annualized basis, the biggest decline since 2009, indicating that manufacturers in the largest economy in the Eurozone are among US trade disputes China and others suffer.

The data was a reflection of the unexpectedly sharp decline in US manufacturing figures released Wednesday before the July 4 holiday.

A significantly lower than expected decline in US crude oil inventories also released Wednesday helped to ease demand in the US summer driving season.

These fears have not resolved the unanimous decision of OPEC and non-OPEC members, including Russia, to cut production by 1.2 million barrels a day by March 2020. The decision had already been prematurely priced in by the markets.

A Reuters study published on Friday revealed that OPEC oil production fell to a new five-year low in June, as an increase in Saudi supply is fueling production losses from Iran and Venezuela caused by US sanctions and failures elsewhere in the group could not compensate.

Gasoline futures fell 1.2% to $ 1.8945 per gallon at 7:53 AM ET (11:53 GMT), while fuel oil fell 0.7% to $ 1.8853 per gallon.

Finally, natural gas futures rose 1.2% to $ 2,317 per million UK heat units.


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