Business and Brands
Oil Prices Post Worst Weekly Loss Since October
U.S based oil contract, West Texas Intermediate futures plunged by 6.4%, and Brent crude futures dropped by 6.8%.
Crude oil prices suffered their biggest weekly loss since October, despite chalking up gains at the last trading session of the week amid fears over energy demand due to renewed lockdowns and an unimpressive vaccine rollout in parts of Europe.
What you should know
For the week, U.S based oil contract, West Texas Intermediate futures plunged by 6.4%, and Brent crude futures dropped by 6.8%, the biggest declines since October for both major oil benchmarks.
Oil bears took hold on the energy market as reports revealed safety concerns surrounding the AstraZeneca COVID-19 vaccine; however, the Germans and other European countries changed the narrative by disclosing a resumption of vaccinations, which helped curb the selling pressures.
In a detailed analysis sent to Nairametrics, Stephen Innes, Chief Global Market Strategist at Axi, gave other key insights weighing on the viscous hydrocarbon despite OPEC+ resolve in keeping oil production at controlled levels.
“What started as a profit-taking correction triggered by a vaccine health scare has now moved into a whole out price level correction. The sell-off in oil is getting compounded by risk-off moves in cross-asset correlations as the market continues to price in tighter financial conditions despite the Fed’s effort to suggest the contrary.
But at the heart of it all, the rally was mainly on the back of OPEC+ production cuts—or rather, the fact that they agreed to hold production steady in April instead of ramping up production as the market had anticipated.”
Bottom line
Oil pundits anticipate that the energy market is experiencing a bit of reality check these days as the supercycle bulls may be giving way to the power of spar e capacity as the thought of more barrels coming back continues to provide the medium-term supply headwind.
- Politics17 hours ago
Breaking: Prominent Nigerian Politician Is Dead(Photo)
- News20 hours ago
Former ECOWAS Court VP berates EFCC chairman over press briefing on Yahaya Bello
- Top Stories21 hours ago
Breaking: Parents ‘suspect foul play’ as boy, 4, dies in BrickHall School Abuja
- Top Stories15 hours ago
Runway Mishap: ART Kicks Against Dana Suspension, Cautions Festus Keyamo
- Politics20 hours ago
Breaking: 118 Inmates Escape As Rainstorm Wreaks Havoc At Suleja Prison
- Entertainment24 hours ago
Transfer: Iheanacho tipped reportedly leaving Leicester City this summer
- Top Stories2 hours ago
Mohbad’s toxicology result ready…what you need to know
- News3 hours ago
Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today 26th April 2024