NEW YORK, June 17 (Xinhua) — U.S. crude oil futures costs plunged as a lot as 6.83 % on Friday on market issues over financial recession.
This marks the benchmark’s deepest drop since March 31 when the entrance month crude oil futures costs sank 6.99 %.
The West Texas Intermediate (WTI) for July supply fell 8.03 U.S. {dollars} to settle at 109.56 {dollars} a barrel on the New York Mercantile Exchange. Brent crude for August supply fell 6.69 {dollars}, or 5.58 %, to shut at 113.12 {dollars} a barrel on the London ICE Futures Exchange.
Concerns over vitality demand are on the rise due to rising expectations that the worldwide economic system is heading for a slowdown within the coming months, mentioned Fawad Razaqzada, market analyst at City Index and FOREX.com.
It’s doable that the slowdown shall be extra extreme than anticipated and that is what traders are frightened about probably the most, in keeping with Razaqzada.
A normal risk-on available in the market and doable larger Russia oil output in July additionally contributed to the losses of oil costs on Friday, in keeping with Phil Flynn, senior market analyst with The PRICE Futures Group.
Russian Deputy Prime Minister Alexander Novak mentioned Thursday Russian oil output doubtless would improve in July on anticipated larger oil exports in June.
Moreover, the United States added 4 energetic oil drilling rigs this week with a complete of 584 ones whereas Canadian energetic oil drilling rigs elevated by ten reaching 104 ones, in keeping with knowledge issued by oil service large Baker Hughes on Friday.
