X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 22 mins IS SAUDI ARABIA SENDING A MESSAGE TO BIDEN
  • 16 mins America Makes Plans to Produce Needed Rare Earth Minerals Domestically
  • 8 hours Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants
  • 2 hours U.S. Presidential Elections Status - Electoral Votes
  • 3 days Here we go - again: plug-in hybrids cost motorists more than what they were told
  • 5 hours Texas Supply Chain Massacre
  • 4 days Former BP Exec "Biden not in war against oil" . . Really ?
  • 2 days Top Conservative Lawyer Says Trump Can Stand Trial
  • 2 days “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 3 days An exciting development in EV Aviation: Volocopter
WoodMac's Dramatic Plan For A 600% Carbon Tax

WoodMac's Dramatic Plan For A 600% Carbon Tax

Energy consultancy WoodMac suggests a…

America's Largest ESG Fund Has No Direct Renewable Holdings

America's Largest ESG Fund Has No Direct Renewable Holdings

Environmental, Social and Governance (ESG)…

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 Prices Under Fire As Traders Cite Demand Concerns

Oil prices dropped early on Friday, as expanding lockdowns in China weighed on market sentiment about immediate global oil demand, while a stronger U.S. dollar also dragged crude futures down.

As of 9:47 a.m. ET on Friday, WTI Crude prices were down by 1.34 percent at $52.89 and Brent Crude was trading down 1.49 percent at $55.58.

Brent prices were headed for their first weekly loss in three weeks, while the U.S. benchmark was poised for a tiny weekly gain early on Friday. According to Bloomberg estimates, WTI Crude was set for a weekly gain in ten of the past eleven weeks.  

Following a rally of several days after Saudi Arabia surprised the market last week with an additional 1 million barrels per day (bpd) cut for February and March, oil prices retreated on Thursday and Friday from their highest levels since February 2020.

Expanding lockdowns in China, where as of Friday, there were 22 million people on lockdown, weighed on the market. China is grappling with its worst resurgence of the coronavirus since the summer of 2020. 

Oil prices were also subdued due to the strengthening of the U.S. dollar on Friday, as a stronger U.S. currency makes crude buying more expensive for holders of other currencies.

In addition, analysts see near-term transportation fuel demand in Europe as weak in the next two to three months due to the lockdowns across the continent. Despite the start of vaccinations in Europe, many countries continue to battle record daily new coronavirus cases and have been on lockdown, again, since before Christmas.    

In its January Monthly Oil Market Report (MOMR), OPEC said on Thursday that restrictions and lockdowns negatively affected Europe’s demand for transport fuels at the end of 2020 and would continue to weigh on consumption in the first quarter of 2021, with “a significant negative impact.”

Early on Friday, expectations of weak oil demand in the first quarter and the stronger dollar outweighed the excitement from the Saudi production cut and the $1.9-trillion stimulus package that U.S. President-elect Joe Biden unveiled on Thursday. 

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News