Oil on Friday slumped near US$70 to mark a fourth-straight week of losses as concerns about demand growth persist.
West Texas Intermediate for June delivery fell 1.17 percent to US$70.04 per barrel, down 1.82 percent from the previous week.
Brent crude for July delivery fell 1.08 percent to US$74.17 per barrel, down 1.5 percent for the week.
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It briefly appeared like West Texas Intermediate would manage to snap its losing streak, supported by signs that Iraqi oil exports likely would not resume yesterday and the US signaling it could purchase crude to refill the strategic reserve after next month.
However, a strong dollar on Friday, which makes oil more expensive for holders of other currencies, wiped out those gains.
Over the week, oil has been pressured by the physical market showing signs of weakness amid poor refining margins and lackluster buying in some areas.
The world’s two biggest economies demonstrated further evidence of cooling, with US jobless claims rising and China’s recovery waning. Money managers have piled into bearish bets in Brent, sending net longs to the lowest since December last year.
“The near-term momentum in crude futures remains with the bears at least until we see more positive fundamentals from the demand side,” said Dennis Kissler, senior vice president of trading at BOK Financial Securities.
Crude has retreated by about 15 percent over the past month as bearish sentiment has gripped the market. Traders expect the US economy to inch closer to recession and China’s rebound has disappointed some market watchers, putting a question mark over energy demand.
On Friday, Citigroup cut its forecast for Brent crude from US$84 per barrel to average about US$82 per barrel this year with demand continuing to underperform expectations.
So far, that has outweighed the lift from supply cuts announced by OPEC and its allies.
However, further cuts might not be on the table for now, Reuters reported, citing an interview with Iraqi Minister of Oil Hayyan Abdul Ghani.
Prices have found technical support near US$70 and US$75 per barrel so far, but a decline below those levels could send oil tumbling quickly toward the mid-60s, market participants said.
Additional reporting by staff writer
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