Biggest weekly loss for crude since beginning of this year
Crude-oil futures ended modestly higher on Friday, 10 October 2014 at Nymex but notched weekly losses that were the steepest since January for New York-traded oil.
Light, sweet crude futures for delivery in November rose 5 cents, or less than 0.1%, to settle at $85.82 a barrel. For the week, the commodity was off 4.4%, its worst weekly performance, in percentage terms in this year.
Global oil prices have been falling on ongoing concerns that supplies far outstrip demand, with contributing factors including high U.S. oil production, a surge in Libyan oil output, a seasonal peak in refinery maintenance, and weak consumption in Asia and Europe. The small uptick on Friday came after both benchmarks traded at multiyear lows on the previous session.
Ongoing U.S. dollar strength, which has pressured commodities markets across the board, has also weighed on oil prices. Investors are now looking to the November meeting of the Organization of the Petroleum Exporting Countries for potential supply cuts to balance the market.
Meanwhile, the dollar rose, with the ICE dollar index, a measure of the greenback against a basket of six rivals, gaining 0.4%. A stronger dollar can weigh on commodities priced in the unit by making them more expensive to users of other currencies.
U.S. stock indexes are under pressure and have hit two-month lows, while other world stock markets are also selling off. U.S. Treasury bond and note futures prices are at contract highs on safe-haven demand. Late this week the focus of the market place has turned to the prospect of weakening world economies that could lead to still more monetary stimulus for the European Union, and could prompt the U.S. Federal Reserve to at least hold off on any plans to raise U.S. interest rates soon. The specter of anemic world economies also carries with it the risk of serious deflationary pressures.
One feature in the market place this week is plunging crude oil prices. Nearby Nymex crude oil futures hit a two-year low of $83.59 a barrel early Friday.
U.S economic data due for release on Friday included import and export price indexes, and the monthly Treasury budget statement. Export prices, excluding agriculture, decreased 0.2% in September after decreasing 0.2% in the prior reading. Excluding oil, import prices ticked down 0.1%, which followed last month's unchanged reading.
Among other energy products, gasoline for November delivery fell 1.74 cents, or 0.8%, to settle at $2.2575 a gallon on Nymex. Gasoline lost 5.1% on the week. November heating oil rose 2.36 cents, or 0.9%, to end at $2.5602 a gallon on Nymex. That snapped a three-day losing streak. On the week, heating oil lost 2.1%.
Natural gas also for November delivery gained 1.4 cents, or 0.4%, to settle at $3.8590 per million British thermal units. On the week, the commodity lost 4.5%.
