Crude caroms 2% on Gulf of Mexico storm, but clocks worst weekly plunge since March

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Crude caroms 2% on Gulf of Mexico storm, but clocks worst weekly plunge since March

On Friday, both UK and US crude oil futures’ prices bounced back after having been faltered three straight sessions in a row, mostly boosted up over weather concerns in Gulf of Mexico, however, had recorded their worst weekly percentage declines since March as investors were bracing for a return of Iranian crude following significant development about lifting a swathe of US sanctions on Tehran.

In point of fact, in the day’s steep gains in crude oil futures were almost entirely prodded over concerns that a storm forming in the western Gulf of Mexico has a 40 per cent chance to turn into a cyclone over next 48 hours as warned by the US National Hurricane Centre, while a number of traders were reportedly “buying the dip” following three straight session of steep losses, adding to further bullish bias on crude oil futures’ prices.

Nonetheless, the gains were curbed substantially over frets that a lift of sanction on Iran after reaching a nuclear deal, which seemed plausible at this standpoint according to a number of industry analysts and refiners in India and Europe, might add millions of barrels of oil per day over second half of the year.

Crude oil rebounds sharply, but ends week more than 3 per cent down

Citing statistics, in the day’s commodity market round off, UK crude contracts’ prices gained 2 per cent to $66.36 a barrel, while US WTI (West Texas Intermediate) crude oil futures’ prices jumped 2.6 per cent to $63.54 per barrel.

Both oil contracts shrugged off more than 3 per cent over the week. Meanwhile, referring to the storm which could transform in to a cyclone in the Gulf of Mexico, a senior analyst at Price Futures Group in Chicago, Phil Flynn said, “This early storm prompted traders to buy crude ahead of the weekend in anticipation of potential production shut-ins.