Crude futures fall 11% this week – biggest weekly drop in more than 8 months

Crude oil futures closed in the red for the sixth consecutive day on Friday (Dec. 9), posting their biggest weekly decline in months. Following the release of weak economic data from China, Europe, and the U.S., investors are increasingly concerned that a global recession will impact oil demand.

  • WTI crude futures were down 44 cents, or 0.6%, at $71.02 a barrel.
  • BRENT crude futures were down 5 cents, or 0.1%, at $76.10 a barrel.

Both contracts fell by around 11% this week, the biggest weekly decline in more than eight months.

Oil prices fluctuated Friday after President Vladimir Putin said Russia, the world’s largest energy exporter, may cut production in response to a cap on Russian crude exports.

Inflation in the U.S. remains an issue. The producer price index (PPI) rose more strongly than expected in November. The PPI rose 0.3% month-on-month against an expected increase of 0.2%. The core PPI rose by 0.4% month-on-month, which was stronger than the expected 0.2%.

Economists expect the U.S. economy to enter a recession next year as the Federal Reserve (Fed) is expected to raise interest rates by 0.50% at its Dec. 13-14 meeting.

The European Central Bank (ECB) is likely to raise interest rates by 0.50% to 2% next week. Although the eurozone economy is believed to have fallen into recession.

ICAP technical analysts warned that if the price of U.S. crude oil falls below $70 per barrel, it could continue to flow downward in the coming days and reach the $60-69 range.

The shutdown of the Keystone pipeline after a leak became known on Wednesday helped to revive the oil markets in the morning. However, this changed after some sections of the pipeline could be put back into operation.

The Spot Market is Closed

Saturday, December 10, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
10.00

71.59

+0.13

+0.18%

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