Oil futures dropped more than 5% Friday, logging hefty losses for the week and month, as U.S. tariffs on Mexico heightened concerns for the global economy and demand for oil, while also sending the U.S. stock market sharply lower.
At the same time, more evidence this week of solid U.S. oil supplies continued to complicate the management of the Organization of the Petroleum Exporting Countries' own production cut, a policy due for review later in June.
West Texas Intermediate crude for July delivery on the New York Mercantile Exchange lost $3.09, or 5.5%, to settle at $53.50 a barrel— the lowest finish for a front-month contract since Feb. 12. Front-month contract prices lost nearly 8.8% for the week and declined 16.3% for May, according to Dow Jones Market Data. That was the worst monthly loss since November, when it skidded 22%.
On its expiration day, the July contract for global benchmark Brent crude fell $2.38, or 3.6%, to end at $64.49 a barrel on ICE Futures Europe — the lowest settlement since Feb. 13. Front-month contract prices lost 11.4% month to date and wrapped up the week off 6.1% lower. August Brent the new front month, settled at $61.99, down $3.34, or 5.1%.
Source : Marketwatch