Oil is set for the biggest weekly decline since May as global demand concerns outweighed an OPEC+ pact to extend supply curbs into 2020 and worries that a renewed confrontation with Iran may threaten supplies.
Futures are down in New York from Wednesday’s close as anxieties over demand resurfaced this week following sluggish economic numbers from the U.S. to China. The bleak figures overshadowed OPEC’s agreement to roll over supply curbs, while the seizure of a tanker carrying Iranian crude to Syria by British special forces on Thursday failed to spur prices.
West Texas Intermediate oil for August delivery dropped 64 cents, or 1.1%, to $56.70 a barrel on the New York Mercantile Exchange as of 7:50 a.m. in London. There was no settlement Thursday due to a holiday in the U.S. and all transactions will be booked Friday. Prices are down 3% so far this week.
Brent for September settlement was unchanged at $63.30 a barrel on the ICE Futures Europe Exchange. Futures are down 4.9% this week. The global benchmark crude traded at a $6.48 premium to WTI for the same month.
Source : Bloomberg