Oil heads for weekly loss as market rout threatens demand

A worker speaks on a mobile telephone as he passes Total SA branded oil drums stored in the warehouse at the Ladol free trade zone port in Lagos, Nigeria, on Tuesday, May 22, 2018. Ladol, a logistics hub for the offshore oil industry in Lagos, Nigeria, is mulling a stock-market listing and corporate bonds to expand its facilities and get more business from major production companies. Photographer: George Osodi/Bloomberg
A worker speaks on a mobile telephone as he passes Total SA branded oil drums stored in the warehouse at the Ladol free trade zone port in Lagos, Nigeria, on Tuesday, May 22, 2018. Ladol, a logistics hub for the offshore oil industry in Lagos, Nigeria, is mulling a stock-market listing and corporate bonds to expand its facilities and get more business from major production companies. Photographer: George Osodi/Bloomberg

Oil was poised for the biggest weekly decline since July as a rout in emerging markets raises concern energy demand will weaken.

Futures in New York fell for a third straight session on Friday after a week-long slide of developing markets. The dollar advanced after American employers added more jobs than expected, diminishing the appeal of commodities priced in the greenback.

“This whole emerging market situation is sapping a lot of energy from commodity markets,” Bart Melek, head of global commodity strategy at TD Securities in Toronto, said by phone. “Risk appetites have waned somewhat. That’s not particularly good.”

The protracted trade dispute between the U.S. and China has cast a shadow over prospects for the economic growth that fuels energy demand. That bearish sentiment has been tempered somewhat by fears that U.S. sanctions against Iran may cripple supplies from OPEC’s No. 3 exporter.

West Texas Intermediate for October delivery fell 60 cents to $67.17 a barrel at 10:30 a.m. on the New York Mercantile Exchange. Prices were down 3.4 percent for the week, the biggest weekly drop since mid July. Total volume traded was about 18 percent below the 100-day average.

Brent for November settlement fell 37 cents to $76.13 on the ICE Futures Europe exchange, on course for a 1.5 percent weekly decline. The global benchmark crude traded at a $9.11 premium to WTI for the same month.

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