Oil prices slide over 3%, clock weekly decline on demand concerns

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Oil prices slide over 3%, clock weekly decline on demand concerns

On Friday, both US and UK crude futures had taken a heavy header of more than 3 per cent and had marked up their worst weekly percentage decline since June, as frets over a steep lag in economic recovery from the pandemic induced fiscal slump had rekindled investors’ worries about a weakening global oil demand.

In point of fact, Friday’s tottering of crude oil futures’ prices appeared to be catalysed by an extended retreat in the US equity market, while a US private payroll report revealing a sluggishness in labour market had pressured the oil prices further despite a maverick upturn in US manufacturing activity alongside factory goods orders.

Aside from that, the day’s commodity market appeared to have downplayed another upbeat economic data released later this week that had shown the US unemployment rate had sharply fallen to 8.4 per cent from a reading of 10.2 per cent a month earlier.

In factuality, a garrulous debate in the Capitol Hill over a second round of pandemic stimulus bill seemed to be taking a heavier toll on market participants’ mind, as job growths in a recessed US economy had sharply slowed down last month as fiscal assistance from the Govt.

had been expired.

Oil totters as labour market slowdown stokes fear of a delayed recovery

Citing statistics, as investors had downplayed reports on upbeat factory activities in the United States and China amid a rise in pandemic cases in Europe, while the bloc’s first- and second-largest economy, Germany and France respectively, had reported a steep downturn in retail sales in latest justification of a lethargic recovery, Brent crude futures had been hoisted down by 3.2 per cent to $42.66 per barrel, while the US WTI (West Texas Intermediate) crude oil futures prices had been faltered just a notch shy of 4 per cent to settle down the day at $39.77 a barrel.

For the week, the US crude futures had shrugged off 7.4 per cent, while the Brent crude futures’ prices had fallen by 5.3 per cent. Meanwhile, referring to a sluggishness in rehiring alongside a waning hope of more monetary stimulus, a partner a Again Capital in NY, John Kilduff said on the day’s commodity market wrap up, “The hopes for more stimulus are going out the window. We need to see economic activity back up to get demand flowing.