Oil dips however wins sixth week of winners and defies large US builds
By Barani Krishnan
Investing.com – Oil prices fell on Friday but rose for a sixth straight week after long positions in the market ignored creeping US crude stocks and weaker demand for fuel.
New York-Traded, the leading indicator of US crude oil, fell 21 cents, or 0.5%, to $ 46.57 a barrel. For the week, however, the WTI was up 0.7%. On Thursday, it hit a nine-month high of $ 47.73, a dramatic reversal from minus $ 40 in April with the advent of the Covid-19.
The global benchmark index for crude oil traded in London ended trading on Friday, down 28 cents, or 0.6%, at $ 49.97 a barrel. Brent hit a March high of $ 51.05 on Thursday, breaking the $ 50 mark for the first time since the pandemic-triggered market crash that saw Brent drop below $ 15 a barrel in April.
Oil prices have fallen sharply in the past six weeks, rising as much as $ 13 a barrel as bets that people around the world may soon be able to travel freely with millions of doses of coronavirus vaccines for delivery over the course of the course were prepared the next few weeks after approval by the responsible health authorities.
This week's rally, however, was particularly worrying. It ignored a monstrous domestic build that the US government reported last week.
US crude oil inventories rose 15.2 million barrels for the week ending December 4, the Energy Information Administration said on Wednesday, while analysts were expecting a decline of 1.42 million barrels instead.
The shell was not the only one announced by the EIA.
The agency's data showed that diesel fuel rose 5.2 million barrels in the week ending December 4, contrary to expectations of a 1.41 million barrels increase.
The U.S. was up 4.22 million barrels last week, according to MSRP, compared to expectations for 2.27 million barrels of construction.
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