Oil edges higher on upbeat data, but reports weekly loss amid pandemic resurgence

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Oil edges higher on upbeat data, but reports weekly loss amid pandemic resurgence

On Friday, both US and UK crude oil futures feathered up more than 1 per cent, mostly riding on the back of a flurry of upbeat economic data including a record US factory activity in March alongside a better-than-anticipated eurozone composite PMI (Purchasing Managers’ Index) data, though a cataclysmic rise in pandemic cases in India and Japan, the world’s third- and fourth-largest oil importers respectively, kept a lid on the gains and led to a weekly percentage decline in crude oil contracts’ prices.

In point of fact, in the day’s modest gains in crude oil futures’ prices were almost entirely goaded by a flurry of upbeat economic data as beforementioned, while investors’ optimism of a demand-surge in a near term, was skied up after US Commerce Department had revealed that the number of Americans filing for first-time unemployment benefits fell to a 13-month low last week.

Besides, a record rise in US factory activities alongside an encouraging euro zone composite PMI (Purchasing Managers’ Index) earlier this month as cited by the London-based data firm IHS Markit, had brushed aside the glooms of a pandemic resurgence in Asia with India reporting the world’s highest number of pandemic cases for straight two days.

Crude oil rises on solid economic data, but logs weekly percentage decline

Citing statistics, in the day’s commodity market round off, UK crude oil futures’ prices gained 1.1 per cent to settle down at $66.11 per barrel, while US WTI (West Texas Intermediate) crude oil futures jumped 1.2 per cent to $62.14 a barrel.

On the week, both crude oil contracts were down by more than 1 per cent, largely due to a growing fret of demand-crunch amid an extra-ordinary rise in pandemic cases in India. Meanwhile, referring to a raft of upbeat economic data in the US and EU suggesting a ground-breaking re-opening of economy in the west, a partner at Again Capital LLC in New York, John Kilduff said, “The PMIs across Europe were really off the charts, especially following the strong unemployment report in the U.S.