Oil prices slide 1%, but register 9% in weekly gains as Norway oil worker strike ends

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Oil prices slide 1%, but register 9% in weekly gains as Norway oil worker strike ends

Both US and UK crude oil futures’ prices were nudged more than 1 per cent lower on Friday after an oil workers’ union strike in Norway had ended, while investors appeared to have engaged more on shelving this week’s profits as crude oil futures had reported a weekly percentage gain of 9 per cent despite Friday’s tumble.

Notably, while in light of an uncertain global economic outlook with rising worries of a pandemic bubble which had been wreaking havocs on money markets since mid-March, analysts were repeatedly questioning the feasibility of crude demands outlook in an intermediate- to longer-term, even an output cut of at least 500,000 barrels per day in the US Gulf of Mexico due to the Hurricane Delta alongside possibilities of a steeper warding off of OPEC+ nations’ prior decision to raise output by early-2021, had botched to extend an oil buying-spree among the market participants in the last day of the week, widely known for profit-taking sell-off waves, in particular in times of economic uncertainty.

Crude oil futures fall, but report biggest weekly rise since June

Citing statistics, in the day’s commodity market wind down, UK crude ended the session down by 1.1 per cent to $42.85 a barrel, while the US West Texas Intermediate (WTI) crude oil futures’ prices fell 1.4 per cent to $40.60 per barrel.

Despite Fridays’ faltering, both oil futures’ prices surged as much as 9 per cent this week, remarking the benchmarks’ first weekly rise in three weeks alongside the biggest weekly gain for the UK crude futures since June.

Nonetheless, oil futures opened the day slightly higher after the US House Speaker Nancy Pelosi had been quoted saying that she would resume talks with the US Treasury’s Mnuchin about the White House-proposed $1.8 trillion pandemic relief aid, however, the bullish momentum torn apart following reveal of media headlines that the Norwegian oil workers’ union’s strikes were resolved.

In point of fact, earlier this week, oil futures’ prices climbed due to a strike of oil field workers in Norway alongside a storm in the US Gulf of Mexico named Hurricane Delta, while possibilities of a reversal of OPEC+ decision to raise output by early-2021 had added to further bullish wing.

Meanwhile, referring to the strike of oil field workers in Norway, a senior analyst at Price Futures Group in Chicago, Phil Flynn said on the day’s commodity market closing bell, “One of the bullish factors that had been supporting prices fell apart late in the day when it was announced that Norway would end their strike”.