Investing
Oil up 1% on signs of slow US output, posts first weekly loss in 8 weeks
© Reuters. FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS/File Photo
By Shariq Khan
BENGALURU (Reuters) -Oil prices rose about 1% on Friday on signs of slowing U.S. output, but both crude benchmarks also ended their longest weekly rally of 2023 on mounting concerns about global demand growth.
West Texas Intermediate (WTI) crude futures gained 86 cents, or 1.1%, to settle at $81.25 a barrel, and futures rose 68 cents, or 0.8%, to settle at $84.80 a barrel.
Both benchmarks pushed higher on Friday after industry data showed that the U.S. oil and rig count, an early indicator of future output, fell for the sixth week in a row. A slump in U.S. production could exacerbate an anticipated supply tightness through the rest of this year.
Those concerns, spurred on by output cuts from the Organization of the Petroleum Exporting Countries and allies, helped oil prices gain for seven straight weeks since June. Brent crude gained about 18% and WTI gained 20% over the seven weeks ended Aug. 11.
This week, however, oil prices dropped about 2% from last week, as a worsening property crisis in China added to concerns about the country’s sluggish economic recovery and reduced investors appetite for risk across markets.
“Concerns for investors remain focused on the tension between slowing global growth and still-tight global supplies,” said Rob Haworth, senior portfolio manager at U.S. Bank Asset Management.
“Prices are likely to remain range-bound for now,” Haworth said, adding that demand is in question for investors worried by the weak data from China.
Concern is also mounting that the U.S. Federal Reserve has not finished raising interest rates to tackle inflation. Higher borrowing costs can impede economic growth and in turn reduce overall demand for oil.
Oil benchmarks were further depressed by seasonal demand weakness heading into the autumn, said Jay Hatfield, CEO of Infrastructure Capital Management.
Hatfield said he expects demand to hold up in China despite its slowing economy and forecast oil prices would trade between $75 to $90 a barrel over the coming months.
Read the full article here
-
Investing5 days ago
Hurricane Helene Hits Spruce Pine Mine, Quartz Used for Tech
-
Side Hustles6 days ago
5 Key Strategies for a Seamless Cloud Migration
-
Investing6 days ago
Israel stocks lower at close of trade; TA 35 down 0.23% By Investing.com
-
Passive Income6 days ago
Go Paperless with the PDF Reader Pro for $49.99
-
Side Hustles6 days ago
Why the Future of Cybersecurity Marketing Relies on Trust
-
Side Hustles5 days ago
VP Exec’s Top Tips for Negotiating and Relationship-Building
-
Make Money4 days ago
The Top Employers and Opportunities for Part-Time Remote Jobs
-
Side Hustles5 days ago
Why the Smallest Details Mean the Most in Marketing