The Magazine for Asian Investors
Crude oil futures closed lower on Friday (Jan. 21) as investors sold off crude futures in a sluggish trading climate. On the back of a stronger-than-expected rise in U.S. crude inventories and a sharp fall in the stock market.
- WTI crude futures were down 41 cents, or 0.5%, at $85.14 a barrel.
- BRENT crude futures were down 49 cents, or 0.6%, at $87.89 a barrel.
Even though the oil price fell on Friday, it still managed to gain this week. U.S. crude oil futures rose 2.2% and Brent crude oil futures rose 2.1% this week.
Crude oil prices were pressured by an unexpectedly large increase in U.S. crude oil inventories. The EIA reported Thursday (Jan. 20) that U.S. crude oil inventories rose by 500,000 barrels last week. Gasoline inventories rose by 5.9 million barrels and refined oil inventories fell by 1.4 million barrels.
The equity markets continued their slide this week, which also partially spilled over to the oil market, as the S&P500 (YTD -7.73%), the DOW (YTD -5.7%), and the NASDAQ (YTD -11.99%) were all down. This negative development could continue for the time being as the Fed tapering is now increasingly likely.
The Spot Market is Closed
Saturday, January 22, 2022