Oil set for first back-to-back weekly losses since April’s rout
Oil headed for its first back-to-back weekly losses since April’s price rout, driven by a sharp slump in risk sentiment earlier in the week and a patchy demand recovery.
Futures in London fluctuated around $40 a barrel on Friday, down about 7% for the week. In recent weeks traders have been turning their attention to data showing the United Arab Emirates has been regularly exceeding its OPEC+ quota since July. While the recovery in road-fuel demand is gaining speed in Asia and Europe, American figures continue to lag.
With a mixed demand picture, rising US crude stockpiles and the OPEC+ alliance gradually adding more supply, some market players are considering storing crude at sea again. There’s been a chorus of bleaker views on consumption this week, with S&P Global Platts saying oil demand is unlikely to get back to 2019 levels before 2022. A retreat in global stocks has also weighed on energy markets.
