Oil higher, but on the track for weekly losses on supply problems


Oil futures increased at the start of Friday, but remained on track for weekly losses after data at the start of this week marked an unexpected leap in US crude inventories and a stronger dollar stressed concerns about the growth in demand.

and remained supporters on Friday as the United States and China prepared to resume commercial talks last week, although expectations for a turnaround remained low. West Texas Intermediary for delivery in September

CLU8, + 0.73%

on the New York mercantile exchange rose by 39 cents, or 0.6%, to $ 65.85 a barrel. The U.S. benchmark it was in line with a weekly drop of 2.6%.

The global benchmark, October Brent crude

LCOV8, + 0.74%

increased by 78 cents, equal to 1.1%, to $ 72.21 a barrel in the ICE Europe stock exchange. Brent is witnessing a weekly loss of 0.8%.

"The abrupt rise in US oil inventories was reported Wednesday by the US Department of Energy is continuing to push prices," wrote Eugen Weinberg, head of commodity research at Commerzbank, in a Note.

Traders are awaiting weekly data for the oil service company Baker Hughes, which is used as a guide for the direction of US crude production, later in the session.

an increase of 6.8 million barrels in US crude oil inventories, defying expectations of a decline of about 2.4 million barrels. Crude futures extended losses after data in Wednesday's session, joining a broader commodity route linked in part to strengthening the US dollar, leaving the WTI to finish at a minimum of 10 weeks and Brent to record his lower end from the beginning of April. Oil recovered on Thursday

Meanwhile, fears of wider damage to emerging markets following the currency crisis in Turkey also served to shake up commodity markets this week, led by a selloff for industrial metals. The ICE index of the US dollar

DXY, -0.36%

which measures the United States against a basket of six main rivals, reached a maximum of 14 months at the beginning of the week on demand related to paradise.

"The oil market has not been spared by macro-induced weakness, and while the [Wedneday’s] crude inventory countervalue did not help, concerns of a strengthening US dollar also created anxiety about the prospects for growth in demand of oil, "wrote analysts at RBC Capital Markets.

This is because a weakening of the domestic currency "creates problems for the main emerging countries in emerging markets such as India, where consumers are already paying close levels for retail petrol.The Indian rupee has fallen to its lowest historians this week, "they observed.

As a result, Brent prices have risen 55% in the last 12 months when denominated in the local currency, they said, while notional oil prices have increased by only 40%.

Weinberg said that concerns remain that the trade tensions between the United States and China, the two largest oil consumers in the world, could weigh on global demand. Meanwhile, on the supply front, crude oil production in Libya is set to return to over 1 million barrels a day for the first time since June, while production in the country's largest oil field returns to levels normal, Weinberg said, citing S & P Global Platts.

The temporary closure of four key oil terminals and the suspension of oil production in Sharara have seen Libyan oil production fall to less than 500,000 barrels a day, sometimes in the summer. That said, the experience of recent years suggests that repeated interruptions to the Libyan oil supply should be foreseen.

In other energy exchanges, September petrol

RBU8, + 0.21%

rose 0.5% to $ 1.9965 per gallon, while the September heating oil

HOU8, + 0.57%

rose by 1% to $ 2,1164 per gallon. September natural gas

NGU18, + 2.03%

rose 0.6% to $ 2.926 per million British thermal units.

Provide critical information for the US trading day. Subscribe to the free Need for Know newsletter from MarketWatch. Register here.

[ad_2]Source link