Oil prices settled below $105 a barrel on Friday for a weekly loss of more than 3%, with the market assessing demand prospects after the Federal Reserve said the world’s largest economy isn’t yet strong enough to withstand the withdrawal of monetary stimulus. Analysts also attributed the second-straight session decline to further easing of the risk premium for oil prices tied to Middle East supply concerns. October crude oil CLV3 -1.71% fell $1.72, or 1.6%, to settle at $104.67 a barrel, its lowest close since Aug. 21. The contract, which expired at the close of trade on the New York Mercantile Exchange, lost 3.3% for the week. November crude CLX3 -0.96% , which is now the front-month contract, fell $1.11, or 1.1% to end at $104.75 a barrel, with the contract down 2.6% for the week. October crude on Thursday dropped $1.68, or 1.6%, giving back a chunk of Wednesday’s 2.5% climb following the Fed’s generally unexpected decision to keep the pace of monthly bond purchases at $85 billion. Wednesday’s rally also came after a bigger-than-expected drop in U.S. crude stockpiles. On Thursday, “the market was weak as somehow, someway the Street sobered up and (maybe) realized that buying energy on the moronic notion that the Fed’s diminished prospect of economic growth is worthy of owning $110 crude oil is, well, moronic,” wrote Stephen Schork, editor of the Schork Report on Friday.
Posted on: Sat, 21 Sep 2013 01:27:16 +0000
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