Crude oil extends losing run as pandemic cases climb

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Crude oil extends losing run as pandemic cases climb

On Friday, both US and UK crude oil futures’ prices scheduled to be expired on July 20 had winded down the day marginally lower as fears over another round of forced business closure due to a recent spike in pandemic cases had taken a heavier toll on investors’ mind.

In point of fact, contemplating the extent of upbeat data that including a jump in Chinese and eurozone industrial activities the crude oil futures had witnessed this week, in normal circumstances the oil futures prices would more likely to witness an upward spiral, however following Thursday’s record surge in pandemic cases in the United States alongside India and Brazil, investors’ appetite appeared to have hit a blind alley with further uncertainties lurking on the horizon.

Apart from that, the US energy firms had slashed the number of operating oil and natgas drilling rigs to a record low for straight 11th week, which had kept a lid on the losses, data from energy services firm Baker Hughes Co.

had revealed.

Crude oil falters over renewed demand worries

Citing statistics, as both US and UK crude oil futures’ prices had witnessed little change this week, the UK crude futures’ prices had ended down the day 0.69 per cent lower to $43.14 per barrel, while the US WTI (West Texas Intermediate) crude faltered 0.31 per cent to settle down the day at $40.59 a barrel.

Besides, on Friday’s commodity market closure, both US and UK crude futures had extended their losing run after a nosedive of 1 per cent on Thursday that followed an OPEC+ decision to trim the record output cut of 9.7 million barrels per day by 2 million barrels per day, starting from August.

In tandem, despite a broad-based recovery of the crude oil futures’ prices since hitting a record low in April following reopening of the businesses across the globe, a renewed spike in the pandemic cases had been causing enough concerns for the big buyers to sway away from the commodity market.