Oil prices edge down as investors weigh rising supplies, demand outlook
Oil prices edged down on Friday as investors weighed rising supplies from major producers and the impact on fuel demand from the COVID-19 pandemic.
Brent crude futures for June edged down 12 cents, or 0.2%, to $63.08 a barrel by 0731 GMT, while U.S. West Texas Intermediate (WTI) crude for May was at $59.59 a barrel, down 1 cent.
Both contracts are on track to post a 2%-3% drop this week after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+ that includes Russia, agreed to gradually increase supplies by 2 million barrels per day between May and July.
Oil prices decline, with U.S. prices losing more than 3% for the week MarketWatch 3 hrs ago
FUTURES MOVERS
Oil futures ended lower Friday, with concerns about growing supply and weakening appetite for energy, as global cases of COVID rise in Europe, Brazil and India in particular, prompting prices to post a loss for the week.
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“When infections rise in such populous countries such as India and Brazil, that can only mean more trouble for oil demand as to counter the infection surge, restrictions will limit road fuel consumption,” said Louise Dickson, oil markets analyst at Rystad Energy.
COVID-19 lockdowns and traffic limitations are “continuing to weigh on oil prices and it will take some time to reach the other end of the tunnel” and vaccinate enough people to justify reopening economic activity and travel, she said in daily commentary.
Crude Oil Futures Settle Lower On Demand Concerns
WASHINGTON (dpa-AFX) - Crude oil prices drifted lower on Friday as worries about outlook for energy demand amid continued surge in coronavirus cases and lockdown restrictions weighed on the commodity.
West Texas Intermediate Crude oil futures for May ended lower by $0.28 or about 0.5% at $59.32 a barrel.
WTI Crude oil futures shed more than 3% in the week.
Brent Crude futures were down $0.23 or 0.36% at $62.97 a barrel a little while ago.
The decision of the Organization of the Petroleum Exporting Countries and allied producers to gradually increase their output by 2 million barrels per day between May and July, raised concerns about possible excess supply in the market if lockdown restrictions remain in place for a longer duration.
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NEW YORK (Reuters) -Oil prices fell about 2% on Wednesday as fresh lockdowns in Europe stoked fuel consumption fears and a pessimistic demand outlook from OPEC and its allies ahead of their meeting to decide on production curbs.
FILE PHOTO: A oil pump is seen at sunset outside Scheibenhard, near Strasbourg, France, October 6, 2017. REUTERS/Christian Hartmann/File Photo
Brent crude for May, which expired on Wednesday, settled at $63.54 a barrel, down 60 cents, or 0.9%. The more active contract for June ended $1.43, or 2.2%, lower at $62.74.
U.S. West Texas Intermediate (WTI) crude futures closed at $59.16 a barrel, losing $1.39, or 2.3%.
Brent was down 3.9% for the month and up 22.6% for the three months ended March 31. WTI fell 3.8% in March and rose 21.9% for the quarter.
Apr 9, 2021 13:51 GMTFXStreet News
Crude oil prices continue to fluctuate in a tight range.
WTI stays below $60 as focus shifts to Baker Huges Oil Rig Count data.
Renewed coronavirus restriction measures continue to cloud the energy demand outlook.
After suffering heavy losses at the start of the week, crude oil prices struggled to stage a convincing rebound and seem to have gone into a consolidation phase.
Focus shifts to US Oil Rig Count
The barrel of West Texas Intermediate (WTI), which lost more than 4% on Monday, closed the previous two trading day virtually unchanged and continues to move sideways below $60. As o writing, WTI was down 0.32% on the day at $59.55.