📈 Fed's first cut since 2020: Time to buy the dip? See Tech-focused stock picksUnlock AI Picks

UPDATE 9-Oil falls to lowest close since March, down a fourth week

Published 25/07/2015, 06:00 am
© Reuters.  UPDATE 9-Oil falls to lowest close since March, down a fourth week
DXY
-

* Drillers add 21 oil rigs in U.S. this week - Baker Hughes

* Brent, U.S. crude post fourth weekly loss

* Brent, U.S. crude prices at lowest since April

* Weak China factory data dents oil demand outlook (Recasts; updates prices to settlement)

By Robert Gibbons

NEW YORK, July 24 (Reuters) - Brent and U.S. crude futures settled on Friday at their lowest since March and posted their fourth straight weekly decline as weak economic data from China and a rise in U.S. oil drilling rigs applied pressure.

U.S. energy firms added 21 oil rigs this week after pulling seven rigs last week, oil services company Baker Hughes Inc BHI.N said. RIG/U

The rig count data arrived a day after U.S. crude fell into bear market territory, as a drop of 21 percent from its June 10 close at $61.43 a barrel indicated the market's prevailing negative sentiment.

China's factory sector contracted in July by the most in 15 months, a preliminary private survey showed. The weaker-than-expected result followed a stock market slide that began in June. ID:nL3N1032YR MKTS/GLOB

Brent September crude LCOc1 fell 65 cents to settle at $54.62 a barrel, the lowest close since March 19 and off 4.3 percent for the week. The $54.30 session low was the lowest front-month price since April 2.

U.S. September crude CLc1 fell 31 cents to end at $48.14, its lowest settlement since March 31 and down 5.5 percent for the week. The session low of $47.72 was the lowest intraday price since April 1.

"Crude was already lower on concerns about the global economy and the rig count added to the negativity," said Phil Flynn, analyst at Price Futures Group in Chicago.

The world's top oil companies are set to report second-quarter earnings showing another drop in profits that could force more spending cuts, according to analysts. ID:nL5N1023IJ

The dollar's .DXY strength also applied pressure, as a stronger U.S. dollar makes greenback-denominated oil more expensive for consumers using other currencies. USD/

Brent and U.S. crude have so far clocked double-digit losses in July. With U.S. crude off 19 percent, it could challenge December's 19.4 percent drop, which was the biggest monthly slump since the financial crisis in 2008.

Money managers cut their net long futures and options positions in the week to July 21, the U.S. Commodity Futures Trading Commission said. ID:nEMN401XRN

Demand for gasoline has been strong, keeping refineries churning at high utilization rates, but August U.S. RBOB gasoline futures RBc1 settled below its 200-day moving average of $1.8514 a gallon on Friday.

"This looks like profit-taking as the end of the U.S. driving season gets closer," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.

The 5 percent weekly drop was gasoline's biggest since mid-March and the sixth consecutive weekly slide, most since the seven weeks ending Jan. 9.

U.S. ultra-low sulfur diesel (ULSD) futures HOc1 also fell a sixth straight week.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.