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Crude oil futures - weekly outlook: June 13 - 17

Published 12/06/2016, 05:49 pm
Updated 12/06/2016, 06:01 pm
Crude oil futures - weekly outlook: June 13 - 17
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Investing.com - Oil futures ended the week sharply lower on Friday, tumbling almost 3%, as market players continued to monitor supply disruptions across the world for further indications on the rebalancing of the market

On the New York Mercantile Exchange, crude oil for delivery in July plunged $1.49, or 2.95%, to end the week at $49.07 a barrel. Prices climbed to $51.67 on Thursday, the highest since July 16, 2015.

For the week, New York-traded oil futures climbed 45 cents, or 0.93%, amid indications of falling U.S. crude stockpiles.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories declined by 3.2 million barrels last week to 532.5 million. Market analysts' expected a crude-stock decline of 2.8 million barrels.

U.S. crude futures prices have nearly doubled since falling to 13-year lows at $26.05 on February 11 as a decline in U.S. shale production boosted sentiment. However, with prices now at levels that make drilling economical for some firms, the rig count might start rising soon and the decline in U.S. production may slow.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for August delivery plunged $1.41, or 2.71%, to settle at $50.54 a barrel on Friday. On Thursday, Brent prices hit $52.86, a level not seen since October 12, 2015.

On the week, London-traded Brent futures gained $0.90, or 1.81%, amid concerns over a disruption to supplies from Nigeria, where militants have staged a number of attacks on the country’s oil operations.

Brent futures prices are up by roughly 90% since briefly dropping below $30 a barrel in mid-February as unplanned supply disruptions in Africa eased concerns over a global glut

Meanwhile, Brent's premium to the West Texas Intermediate crude contract stood at $1.47 at Friday’s settlement, compared to a gap of $1.39 by close of trade on Thursday.

In the week ahead, oil traders will be focusing on U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.

Investors will also keep an eye out for monthly reports from the International Energy Agency and the Organization of Petroleum Exporting Counties to gauge global supply and demand levels.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, June 13

The Organization of Petroleum Exporting Counties will publish its monthly assessment of oil markets.

Tuesday, June 14

The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.

The International Energy Agency will release its monthly report on global oil supply and demand.

Wednesday, June 15

The U.S. Energy Information Administration is to release its weekly report on oil and gasoline stockpiles.

Friday, June 17

Baker Hughes will release weekly data on the U.S. oil rig count.

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