On Friday, both US West Texas Intermediate (WTI) and UK crude oil futures’ prices had clocked their sixth straight week of percentage gains, nonetheless, both contracts ended the session lower as a pandemic associated restriction on usiness activities in the US state of New York had offset vaccine optimism.
In point of fact, both Brent and US crude oil futures’ rose sharply earlier in the week over hopes of a fresh US stimulus bill alongside prospects of a vaccine rollout, however, Friday’s faltering of the contracts appeared to have almost entirely prodded by a record rise in pandemic cases in the United States alongside a stiffening of pandemic-induced restrictions in several US states including New York.
Apart from that, a week-end profit taking sell-off wave appeared to have hindered the progresses, while a Thursday EIA (Energy Information Administration) data that had shown a surprise US inventory build, had taken a heavier toll on market participants’ mind as a potential supply glut seemed to be brewing on the horizon.
Crude oil ends lower, but report sixth straight week of gains
Citing statistics, in the day’s commodity market round off, the UK crude closed the day 0.6 per cent lower to $49.97 a barrel after hitting a pre-pandemic level a day earlier, while the US WTI crude oil futures’ prices shed 0.5 per cent to settle down at $46.57 per barrel after rising as much as 3 per cent on Thursday.
For the week, US and UK crude futures’ prices gained 1 per cent and 1.5 per cent respectively, remarking their sixth straight week of percentage gains. Meanwhile, adding that the pandemic-led restrictions had pummelled both contracts on Friday, a Director of energy futures for Mizuho in NY, Bob Yawger said, “Restrictions in New York are weighing on prices.
As we approach the close, the speculator community is reluctant to go home with a net long position”. Nevertheless, over the weekend, the United States Army General Gustave Perna was quoted saying in a press conference that the US would begin to administer pandemic vaccines as early as from Monday, signalling a riant outlook for crude oil futures’ prices in a near-term outlook.