• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days If hydrogen is the answer, you're asking the wrong question
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs
U.S. Crude Oil Could Be Ripe for A Short Squeeze

U.S. Crude Oil Could Be Ripe for A Short Squeeze

Crude oil inventories at Cushing…

Red Sea Disruptions Force Saudi Aramco to Slash Prices

Red Sea Disruptions Force Saudi Aramco to Slash Prices

Asian refiners expected hefty cuts…

Oil Could Rise More than Anyone Expects This Year

Oil Could Rise More than Anyone Expects This Year

Morgan Stanley's Martijn Rats thinks…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Set For First Weekly Loss In Seven Weeks

Cushing oil

Despite the fact that oil posted mixed results on Friday morning, prices were set for their first weekly loss in seven weeks after a spike in coronavirus infections across the United States had market participants worried about the pace of oil demand recovery.

As of 11:47 a.m. EDT on Friday, WTI Crude was down 0.91 percent at $36.21 and Brent Crude was up 0.73 percent on the day at $38.81.

On Thursday, oil prices crashed by 8 percent, driven by fears of a second wave of COVID-19. Market sentiment was further depressed by the EIA reporting on Wednesday record U.S. commercial crude oil inventories, while the Fed said America’s economy would shrink by 6.5 percent this year.

Thursday’s price collapse was the worst crash since late April this year.     

Following a rally in recent weeks, oil prices are now on course for the first weekly decline since late April, after the market focused on demand, and on the possibility that global oil demand will take months, and potentially more than a year, to recover.

A reported spike in coronavirus cases across half of the U.S. states further weighed on sentiment, rekindling fears that a potential slower easing of lockdowns could stall the oil demand recovery. Nashville, Tennessee, delayed its phase three re-opening, while Houston, Texas, is seeing signs of a second wave.

The bearish mood on the market this week is in sharp contrast with the rally in recent weeks, in which speculators and investors had focused on the record supply cuts from OPEC+ and on the fast economics-driven production curtailments in North America.

Investment banks, including Morgan Stanley and Goldman Sachs, warned early this week that oil prices might have risen too fast too soon in May and early June, considering the still tepid oil demand recovery.   

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News