West Texas Intermediate headed for its biggest weekly decline since January amid signs of weaker fuel demand in the U.S., the world’s biggest oil consumer. Its discount to Brent crude widened to the most in five weeks.
Futures traded in New York declined 4.4 percent this week as the dollar strengthened before data on U.S. employment today. The nation’s gasoline inventories rose to the highest level in four months last week as demand fell and crude output advanced to the highest since 1986 in early July, government data show. Brent is poised for a weekly decline amid speculation that energy supplies from Russia will be unaffected by further sanctions over Ukraine.
“Demand has been a bit sluggish,” Hannes Loacker, an analyst at Raiffeisen Bank International AG in Vienna, said by e-mail. “Shale oil growth in the U.S. and oil sands in Canada lead to the situation that geopolitical tensions are not weighing that strongly as in the past. It’s always about risk aversion too.”
WTI for September delivery declined as much as 73 cents to $97.44 a barrel in electronic trading on the New York Mercantile Exchange, trading for $97.53 at 9:49 a.m. London time. The volume of all futures traded was about 9 percent above the 100-day average for the time of day. Prices slid 6.8 percent last month, the most since May 2012.
Brent for September settlement fell 18 cents to $105.84 a barrel on the London-based ICE Futures Europe exchange. Prices are down 2.4 percent this week. The European benchmark crude was at a premium of as much as $8.33 to WTI, the widest on an intraday basis since June 24.
Recommended Content
Editors’ Picks
AUD/USD eases toward 0.6500 after mixed Australian trade data
AUD/USD is seeing some fresh selling interest in the Asian session on Thursday, following the release of mixed Australian trade data. The pair has stalled its recovery mode, as the US Dollar attempts a bounce after the Fed-led sell-off.
USD/JPY rebounds above 156.00 after probable Japan's intervention-led crash
USD/JPY is staging a solid comeback above 156.00, having lost nearly 450 pips in some minutes after the Japanese Yen rallied hard on another suspected Japan FX market intervention in the late American session on Wednesday.
Gold price stalls rebound below $2,330 as US Dollar recovers
Gold price is holding the rebound below $2,330 in Asian trading on Thursday, as the US Dollar recovers in sync with the USD/JPY pair and the US Treasury bond yields, in the aftermath of the Fed decision and the likely Japanese FX intervention.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
The FOMC whipsaw and more Yen intervention in focus
Market participants clung to every word uttered by Chair Powell as risk assets whipped around in a frenetic fashion during the afternoon US trading session.