Have a look OIL Crude oil futures - weekly outlook: January 26 - 30 West Texas Intermediate oil prices fell sharply on Friday, as concerns over slowing demand and ample supplies combined with a rally in the dollar weighed. On the New York Mercantile Exchange, crude oil for delivery in March slumped 72 cents, or 1.55%, on Friday to end the week at $45.59 a barrel. A day earlier, Nymex oil plunged $1.47, or 3.08%, to end at $46.31. WTI prices touched $44.20 on January 13, a level not seen since March 2009. For the week, New York-traded oil futures lost $3.61, or 7.21%, the biggest weekly decline in six weeks. The U.S. Energy Information Administration said Thursday that U.S. crude oil inventories rose by 10.1 million barrels last week, the biggest weekly gain since March 2001. Total U.S. crude oil inventories stood at 397.9 million barrels, the highest level since May. Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose to more than 11-year highs of 95.77 on Friday, before trimming gains to end at 95.32, up 0.69% for the day and 2.33% higher for the week. A stronger U.S. dollar usually weighs on oil, as it makes dollar-priced commodities more expensive for holders of other currencies. The euro fell to fresh 11-year lows against the greenback after the European Central Bank unveiled a €1.2 trillion asset purchase program on Thursday. The central bank will purchase €60 billion in assets per month, starting in March and continuing until late 2016, to combat slowing growth and inflation in the euro area. Elsewhere, on the ICE Futures Exchange in London, Brent for March delivery inched up 27 cents, or 0.56%, on Friday to settle at $48.79 a barrel by close of trade. Brents gains came following reports of the death of Saudi Arabias King Abdullah amid growing speculation over a possible shift in the kingdom’s policy of allowing crude prices to fall. The 90-year-old monarch, who was admitted to hospital in December with pneumonia, will be succeeded by his half-brother, Crown Prince Salman. Gains were limited after data showed that Chinas HSBC Flash Manufacturing Purchasing Managers Index held below the 50.0-level for the second straight month in January, underlining concerns over the health of the worlds second largest economy. China is the worlds second largest oil consumer after the U.S. and has been the engine of strengthening demand. On Thursday, London-traded Brent fell 51 cents, or 1.04%, to close at $48.52. Brent hit $45.19 on January 13, the weakest level since April 2009. Despite Fridays gains, the March Brent contract lost $1.38, or 2.75%, on the week. Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.20 a barrel by close of trade on Friday, compared to $1.48 in the preceding week. Oil prices have fallen nearly 60% since June as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies. In the week ahead, investors will be awaiting the outcome of Wednesday’s Federal Reserve policy meeting for further clarification on when interest rates might start to rise. Friday’s preliminary data on U.S. fourth quarter growth will also be in focus, while the latest euro zone inflation data is also due out on Friday.
Posted on: Mon, 26 Jan 2015 10:29:44 +0000
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