Friday, 7 September 2018 08:59 WIB |
Oil is poised for the biggest weekly decline in eight weeks as a rout in emerging markets raised contagion fears while government data showing growing inventories at a key U.S. storage hub also weighed on prices.
Futures in New York were little changed, on course for a weekly loss of 2.7 percent. Developing nation equities were on the edge of a bear market, increasing concerns that the tumult could sap energy demand. Meanwhile, crude inventories at Cushing in Oklahoma rose for a fourth week, with American stockpiles of gasoline and distillates also expanding, the Energy Information Administration reported.
The anxiety over emerging economies is the latest global event to damp market sentiment. The escalating trade tension between the U.S. and China has also led investors to shun risk, with crude prices slumping since June on expectations President Donald Trump is set to announce additional tariffs on $200 billion of Chinese imports.
Still, speculation that U.S. sanctions on Iran could tighten oil markets, with some buyers already shunning imports from the Persian Gulf nation, have been a support. The structure of the futures market is reflecting those supply risks, according to Jefferies LLC, with near-term contracts for Brent crude trading higher than those for later contracts in what™s known as backwardation.
West Texas Intermediate for October delivery traded at $67.88 a barrel on the New York Mercantile Exchange, up 11 cents, at 9:28 a.m. in Tokyo. The contract is set for a $1.90 drop this week, the most since July 13. Total volume traded was about 75 percent below the 100-day average.
Brent for November settlement added 10 cents to $76.60 a barrel on the ICE Futures Europe exchange. The contract is on course for a 1.4 percent slide this week. The global benchmark crude traded at a $8.96 premium to WTI for the same month.
Source : Bloomberg