Oil closed down in New York for the first time in three days amid rising concerns about the likelihood of a global economic contraction and mounting supplies.
Oil extended its retreat as investor appetite for risk assets shrank and uncertainty persisted over how much OPEC output will need to be cut to counter booming U.S. shale supplies.
Brent crude oil averaged $72 per barrel (b) in 2018, and West Texas Intermediate (WTI) averaged $65/b in 2018.
Oil headed for its first annual decline since 2015, slumping more than 20 percent in a turbulent year that saw fears of supply scarcity turn to expectations of a surplus.
Oil was jolted higher by efforts across the globe to support prices as Saudi Arabia and Russia extended their pact to manage the market and Canada’s largest producing province ordered unprecedented output curbs. Prices retreated slightly after Qatar said it was leaving OPEC.
Oil climbed as the Trump administration signaled optimism a trade deal may be reached with China and an industry report indicated robust U.S. fuel demand.
Oil rose from its lowest settlement in more than a year in New York, though signs of record output from Saudi Arabia amid pressure from President Donald Trump continued to weigh on the market.
Oil slipped again on persistent fears that a surplus will re-emerge next year despite OPEC’s plans to cut production.
After declining by more than 20 percent from the October peak, oil prices are showing some signs that they have now bottomed out.
Oil’s record losing streak has plunged prices into a bear market and is reverberating around the globe, with the mayhem rattling everyone from bond traders to political leaders and fund managers.
Oil was showing little sign of recovering from its unprecedented decline as investors flee a market hammered by swelling supplies and a darkening demand outlook.
Oil fell for a 12th day, its longest losing streak on record, after U.S. President Donald Trump criticized Saudi Arabia’s plan to cut output.
Saudi Arabia said OPEC and its allies should reverse about half the increase in oil output they made earlier this year as fears of shortages are supplanted by concerns about oversupply and collapsing prices.
Oil climbed after a record run of losses as Saudi Arabia said it will reduce crude sales in December and speculation rose that OPEC and its allies will cut output next year.
Oil headed for the biggest weekly loss since February as the U.S. softened its crackdown on Iranian exports and American supplies surged, assuaging fears of an impending shortage.
Oil faltered below $70 a barrel as Saudi Arabia said it has no intention of using its oil wealth as a political tool and as American crude stockpiles were seen gaining for a fifth week.
For oil investors, this is both the best of times and the worst of times, depending on which crude benchmark you trade.
Oil fell near $69 a barrel on concern over higher inventories at a key storage hub in the U.S. and as the threat posed by a storm to Gulf of Mexico assets eased.
Oil extended gains after an industry group signaled American crude stockpiles fell more than expected and a weaker dollar raised the allure of commodities priced in the U.S. currency.
WTI crude held gains near $66 a barrel as investors assessed signs of slowing growth in U.S. crude production due to a pipeline crunch against ongoing concerns over a trade war between the world’s biggest economies.
A bruising week for oil has set prices on course for the longest weekly losing streak in three years as a trade war between the world’s two biggest economies stokes fears it could sap energy demand.
S&P Global Platts, the company that sets the key price of Brent crude, is contemplating the eventual incorporation of U.S. oil to help calculate one of its newest European benchmarks, a sign of just how much America’s booming exports are reshaping global energy trading.
The world’s two most important oil benchmarks are behaving very differently in the aftermath of OPEC’s meeting in Vienna.
Oil in London headed for a second weekly decline as investors tried to gauge whether OPEC and its allies will ease production caps at what’s set to be a contentious meeting next week.
It’s tough to stay positive on crude when the world’s three oil superpowers are likely to increase production.