Oil Prices Fall on Demand Concerns and Skepticism over US-Iran Nuclear Deal
Oil prices are set to post their second consecutive weekly loss as they continue to fall over concerns about demand and skepticism that the US and Iran could strike a nuclear deal. Brent crude futures dropped 35 cents, or 0.5%, to $75.61 a barrel by 7:04 a.m. Saudi time, while the US West Texas Intermediate crude futures eased 35 cents, or 0.5%, to $70.94. Both benchmarks slid by around $1 on Thursday, rebounding from their earlier losses of more than $3, after the US and Iran both denied a report by the Middle East Eye that they were close to a nuclear deal. For the week, they were on track for losses of about 1%, after shedding about the same amount in the previous week.
Oil prices had risen early in the week following Saudi Arabia’s pledge over the weekend for deep output cuts, but they pared gains after rising US fuel stocks and weak Chinese export data. Satoru Yoshida, a commodity analyst with Rakuten Securities, said factors such as fears over tighter supply and higher demand as the US enters driving season which could drive prices higher were being offset by worries over a slow pickup in China’s fuel demand. “Crude prices didn’t get any favors from China as their economic recovery has disappointed,” OANDA analyst Edward Moya said.
While a Reuters poll of economists showed the US Federal Reserve could skip a rate hike at its June 13-14 meeting, the absence of similar signals from other major central banks was weighing on the oil demand outlook, Moya added.
H2: Oil Prices Look Set to Post Second Straight Weekly Loss
Oil prices are expected to stay in a range of about $3 above and below $70 for WTI in the near term, according to Satoru Yoshida, a commodity analyst with Rakuten Securities. Both benchmarks slid by around $1 on Thursday, rebounding from their earlier losses of more than $3, after the US and Iran both denied a report by the Middle East Eye that they were close to a nuclear deal. For the week, they were on track for losses of about 1%, after shedding about the same amount in the previous week.
H2: Demand Concerns and Skepticism over US-Iran Nuclear Deal Weigh on Oil Prices
Oil prices had risen early in the week following Saudi Arabia’s pledge over the weekend for deep output cuts, but they pared gains after rising US fuel stocks and weak Chinese export data. Satoru Yoshida said factors such as fears over tighter supply and higher demand as the US enters driving season which could drive prices higher were being offset by worries over a slow pickup in China’s fuel demand. “Crude prices didn’t get any favors from China as their economic recovery has disappointed,” OANDA analyst Edward Moya said.
H2: Oil Prices Under Pressure from Weak Chinese Economic Recovery
Crude prices are under pressure from China’s weak economic recovery, according to OANDA analyst Edward Moya. While oil prices had risen early in the week following Saudi Arabia’s pledge over the weekend for deep output cuts, they pared gains after rising US fuel stocks and weak Chinese export data. Satoru Yoshida said factors such as fears over tighter supply and higher demand as the US enters driving season which could drive prices higher were being offset by worries over a slow pickup in China’s fuel demand.
H2: Oil Prices Could Be Driven Higher by Tighter Supply and Higher Demand
Oil prices could be driven higher by fears over tighter supply and higher demand as the US enters driving season, according to Satoru Yoshida, a commodity analyst with Rakuten Securities. However, these factors are being offset by worries over a slow pickup in China’s fuel demand. “Crude prices didn’t get any favors from China as their economic recovery has disappointed,” OANDA analyst Edward Moya said. Oil prices had risen early in the week following Saudi Arabia’s pledge over the weekend for deep output cuts, but they pared gains after rising US fuel stocks and weak Chinese export data.
H2: Major Central Banks’ Signals Weigh on Oil Demand Outlook
The absence of signals from other major central banks was weighing on the oil demand outlook, according to OANDA analyst Edward Moya. While a Reuters poll of economists showed the US Federal Reserve could skip a rate hike at its June 13-14 meeting, the lack of similar signals from other major central banks was affecting oil prices. Oil prices had risen early in the week following Saudi Arabia’s pledge over the weekend for deep output cuts, but they pared gains after rising US fuel stocks and weak Chinese export data.