Oil fell more than a dollar per barrel this Friday, June 9, and thus recorded a second consecutive weekly decline. This happened within the framework of disappointing Chinese data that added to doubts about the growth in demand behind the Saudi Arabia’s decision to cut production weekend.
Brent crude futures fell $1.17or a 1.5%to be in $74.79 a barrel, while US crude West Texas Intermediate (WTI) was down $1.12or a 1.6%to $70.17 the barrel.
Oil plunged on reports of a possible US-Iran nuclear deal
Both references lost more than $3 last Thursdayafter the media reported that the US-Iran nuclear deal was imminent and would lead to a higher offer.
Prices pared losses after both countries denied the informationand ended down around a dollar per barrel.
“Thursday’s price movements show the fragility of oil”said Giovanni Staunovo, UBS analyst.
“The Saudi cut slightly raised prices and then the rumors about the possible return of Iranian barrels caused a strong fall. Long-term investors are likely to stay on the sidelines until further declines in oil inventories become visible,” he said.
Oil prices had risen earlier in the weekdriven over Saudi Arabia’s promise to further cut productionBesides cuts agreed earlier with the Organization of the Petroleum Exporting Countries and its allies.
However the increase in fuel reserves in the United States and the weak Chinese export data They have weighed down the markets.
In May, Chinese ex-factory prices fell at the fastest rate in seven years and above forecasts, as weaker demand weighed on the slowdown in the manufacturing sector and overshadowed the fragile economic recovery.
Source: Ambito
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