Oil dips one percent on US supply surge, price remained well-supported

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Oil dips one percent on US supply surge, price remained well-supported

On Friday, the 8th of March 2019, both UK and US crudes fell more than one percent after falling as much as 3 percent during the intra-day trading, after release of a fresh batch of disappointing data from US alongside China, reviving growth concerns and a slower demand of the oil.

As surging US oil production had bene unsettling the market, the UK crude lost 0.8 percent to conclude the week at $65.74 per barrel, while the US West Texas Intermediate Crude Future fell more than 1 percent to settle at $56.07 a barrel.

Despite today’s tottering, the US crudes ended the week 0.5 percent higher. Oil had been swaying up and down during the highly volatile Asian and European trading session, as China posted another set of distressful data escalating concerns for crude future prices and global growth.

Never the less, China has been the largest importer of oil in the world, and it had posted more than 20 percent fall in export in February and a contraction in the imports by 5 percent, pulling the strings of a much downbeat note for crude future prices.

Meanwhile, the worry became widespread in the evening (Morning US session), when US job data posted that the US economy had created 20 thousand new jobs in February, while analysts were predicting a number closer to 200 thousand.

Apart from that, the US non-farm payroll report also showed a sign of contraction, however, crude oil prices remained well supported despite another day in the howl of holocaust, as Saudi reported OPEC nations’ production cut were closing in to a target 1.2 million barrels per day.

Citing a handy connection between equity market and energy prices, a technical analyst at United-ICAP, Brian LaRose said, “If we see equity markets continue to sink, it will eventually drag energy prices lower with it. ”