Crude oil futures plunge 4%, but report weekly gain as US vote counts continue

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Crude oil futures plunge 4%, but report weekly gain as US vote counts continue

On Friday, both US and UK crude oil futures’ prices shredded as much as 4 per cent as a renewed lockdown measure adopted by a number of major economies in the eurozone had been stoking frets of a lacklustre demand outlook, while an excruciatingly close US Presidential election had also prompted the investors to jump on the bandwagon of a week-end profit-taking wave.

In point of fact, earlier this week, crude oil futures scheduled to be expired on November 25 had pared almost all of its losses which it had to stomach last week when both US WTI (West Texas Intermediate) and Brent crude oil futures’ prices had reported their steepest weekly percentage decline in more than five months.

Nonetheless, crude oil futures’ prices seemed to be met with a double whammy on Friday, while a raft of investors had joined a week-end profit-taking wave and four more eurozone economies had inclined a sweeping lockdown, adding holocausts to the hopes of a rebound in crude oil demands.

Crude oil pummels as US Presidential election keeps investors at edge

Apart from a record rise in pandemic cases in major eurozone economies including France and Germany, a fiercely contested US election had kept the investors at edge.

Nonetheless, a likely triumph for the Democratic challenger Joe Biden could improve oil futures’ demand, since investors were expecting a mass-scale stimulus package following election associated chaos. Citing statistics, on Friday’s commodity market closing bell, the UK crude futures’ prices plummeted 3.62 per cent to $39.45 a barrel, while the US WTI crude oil futures’ prices took a tattering header of 4.25 per cent to wind down the session at $37.14 per barrel.

However, despite Friday’s cataclysmic plunge that wiped out a lion’s share of the weekly gains of black gold, UK crude has been up by 5.8 per cent on the week, while the US WTI crude oil futures rose 4.3 per cent.

Meanwhile, referring to a downbeat market sentiment mostly meaded out of a steep lack in stimulus initiatives from the US Government, a director at energy futures at Mizuho, Bob Yawger said on the day’s commodity market round off, “Crude oil is very sensitive to the stimulus expectations, which just took a hit for the worse. The coronavirus situation is as negative a demand indicator as you can get.