Oil Futures Settle Sharply Lower For The Day, But Gains 4.5% In Week

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Crude oil futures ended sharply lower on Friday, weighed down by rising concerns over outlook for energy demand due to the continued surge in coronavirus cases across the U.S. and in several European countries.

Higher output from Libya weighed as well.

West Texas Intermediate Crude oil futures for December ended down $1.65 or 4.3% at $37.14 a barrel.

Brent crude futures were down $1.52 or 3.7% at $39.41 a barrel.

Despite today’s weakness, WTI Crude and Brent futures gained 4.5% and 6%, respectively this week.

According to reports, U.S. saw a surge of over 120,000 new cases of coronavirus infections on Thursday, recording an increase of over 100,000 cases for a second straight day.

The continued impasse over a stimulus package too hurt.

A report from Baker Hughes showing another increase in U.S. drilling rigs count added to oil’s woes. The report said total active drilling rigs in the U.S. increased for the eighth week in a row, rising to 300 (up 4) this week.

U.S. oil rigs added 5 to 226, while gas rigs count fell by 1 to 71.

The likelihood of OPEC and allies delaying an earlier proposal of increasing crude output by 2 million barrels from January helped limit oil’s downside.

The material has been provided by InstaForex Company – www.instaforex.com

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