
Oil prices rose on Friday, but are on track for a weekly loss due to concerns about US trade tariffs, rising US production and crude and gasoline stockpiles. Anadarko photo.
Oil prices slid in early trading, but rebounded as the session continued
Oil prices were up slightly on Friday after stocks rebounded following Thursday’s losses, however, benchmark crude futures posted their first weekly decline in three weeks.
Brent crude ended the day up 54 cents to $64.37/barrel and US WTI rose 26 cents to $61.25/barrel. The Canadian Crude Index hit $38.82.
Overall this week, Brent was down 4 per cent and WTI fell over 3 per cent and the premium of the Brent front-month contract over WTI fell briefly to its lowest since August before edging up again prior to close.
On Thursday, US President Donald Trump said he is considering imposing hefty tariffs to protect US steel and aluminum producers. The market fell as investors the comments would start a trade war.
US oil and gas industry officials slammed the plan and argued it would kill energy jobs by raising costs for large infrastructure projects.
“Tariffs brought concerns that economic growth will be unable to boost demand,” Gene McGillian, director of market research at Tradition Energy told Reuters.
Following Trump’s remarks on Thursday, stocks fell and continued to slide during early trading on Friday. As the day wore on, however, oil prices rebounded along with US stocks and the S&P 500 along with the Nasdaq moved into positive territory.
Oil prices remained under pressure on concerns that rising US production is undermining OPEC’s efforts to reduce the global oversupply of crude.
On Wednesday, the US Energy Information Administration reported US crude stocks increased by more than analysts had anticipated and gasoline stocks posted a surprising gain.
“We are being driven by the pickup in US inventories and in general terms the market went a bit too far, too soon,” Ric Spooner, chief market analyst at CMC Markets told Reuters.
“Then we have the volatility in the U.S. dollar and the implications of the tariff news to factor in,” he said.
On Monday, some OPEC officials, including Secretary General Mohammad Barkindo, will meet with representatives from US shale firms to discuss reducing the world’s oversupply of crude.
Be the first to comment