Crude oil collapses on pandemic fear, but registers weekly percentage gain



by   |  VIEW 1254

Crude oil collapses on pandemic fear, but registers weekly percentage gain

On Friday, both US and UK crude futures’ prices were slumped after gaining over 2 per cent a day earlier followed by the release of US non-farm payroll data that had witnessed a record surge of 4.8 million jobs last month alongside a fall in US crude oil inventories, however, both US and Brent crude futures scheduled to be expired on July had reported a weekly rise over a number of upbeat economic data this week including a sharp turnaround in China’s industrial profits alongside a rebound in the United States’ manufacturing activities.

In point of fact, although the Friday’s faltering of the crude oil futures’ prices were largely linked to a weekend sell-off amid growing uncertainties over a spike in pandemic cases in the United States, a steeper OPEC+ supply cut alongside signs of a broad-based recovery in global economy had hoisted up the crude oil futures’ prices this week.

US and UK crude fall amid weekend sell-off, pandemic uncertainty

Citing statistics, on Friday’s commodity market closing bell, the US WTI (West Texas Intermediate) crude oil futures’ prices fell by 0.76 per cent to $40.28 per barrel, while the Brent crude futures’ prices lost 0.70 per cent to $42.78 a barrel.

However, despite the dwindling in Friday’s market, both US and UK crude futures had reported a weekly percentage gain of 5.11 and 5.61 per cent respectively. As a matter of fact, both US and UK futures’ prices gained over 2 per cent on Thursday over optimisms of a sharp rebound in economic activities alongside a drop in US crude inventories, eventually lifting up the Brent crude futures’ prices over $43 a barrel.

Nonetheless, referring to a growing disbelief among the investors over an earlier-than-expected economic recovery from the pandemic-propelled fiscal slump, an analyst at Rystad Energy, Louise Dickson said on Friday, “If this trend continues, oil demand in the region is at risk.