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Crude oil futures closed lower on Friday (Aug. 12), driven by news reports that the oil spill in the Gulf of Mexico may be short-lived. In addition, Iran’s signal that it is close to a nuclear agreement with the superpowers meant that Iranian oil could return to the world market, which also depressed oil prices.
- WTI crude futures fell $2.25, or 2.4%, at $92.09 a barrel. but rose 3.5% this week.
- BRENT crude futures fell $1.45, or 1.5%, at $98.15 a barrel, but were up 3.4% for the week.
Crude oil futures fell after a Louisiana state official announced that damaged oil pipeline components will be replaced by the end of the day. The damage affects oil shipments off the coast of the Gulf of Mexico.
Crude oil contracts were also under pressure after Iran’s state-run IRNA news agency, citing Iranian officials, reported that Iran was ready to accept an offer from the European Union (EU) to revive the 2015 nuclear deal if it could offer guarantees on Iran’s demands.
Oil prices also fell after the Organization of Petroleum Exporting Countries (OPEC) released a report on the outlook for global economic growth and oil demand this year, in which it lowered its forecast for global oil demand to 100 million barrels per day from 100.3 million barrels per day previously. Further coronavirus outbreaks and global tensions are the main reasons for the correction.
Oil prices also fell after U.S. oil drilling company Baker Hughes said Friday that the U.S. rig count, which would give an indication of future oil production, rose by three this week to 601.
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Saturday, August 13, 2022