HomeIndustriesOil Posts Largest Weekly Decline Since May

Oil Posts Largest Weekly Decline Since May

Oil prices slumped this past week as traders looked to make sell-offs amid changes in Chinese oil growth and shrinking U.S. stockpiles. The price of benchmark West Texas Intermediate fell to $77 per barrel, the largest weekly decline since the first week of May. Futures have been locked in a $4 trading band over the past week.

US inventories dropped for a fourth straight week, falling to its lowest level since February. This appears to be a major factor in dissuading buyers in the eyes of industry analysts. “We need a positive catalyst and right now inventory draws are expected and not providing enough of a reason to buy this dip,” Rebecca Babin, senior energy trader at CIBC Private Wealth observed.

Despite the recent decline in demand and prices, crude oil prices have still been moderately higher for the year. This was largely helped by a cut in production by the OPEC+ alliance as well as growing market expectations of an incoming Federal Reserve interest rate decline, particularly with employment figures stabilizing and inflation cooling toward the US central bank’s 2% target. Still, crude prices may be further influenced by OPEC+’s next move, with market watchers split over whether the cartel will decide to lift their output restrictions over the course of the next quarter.

Elon Musk is No Longer Interested in Buying TikTok

Tesla and SpaceX CEO Elon Musk is no longer interested in expanding his social media platform portfolio. Musk, who already owns X (former Twitter),...

Alphabet’s Stock Sinks on Missed Revenue, AI Spending

Alphabet, the parent company of Google and YouTube, saw its stock drop by more than 7% on Tuesday. This was a result of a...

Bitcoin and Other Cryptocurrencies Plunge Amid Tariffs on Imports From Mexico and Canada

Bitcoin, the world's most valuable cryptocurrency, has dropped 2.67% on Monday morning and dragged down other crypto assets as well as shares of crypto-centric...