WTI remains on the back foot, drops below $63 ahead of Baker Hughes data
- Crude oil prices are falling for the seventh straight day.
- Worsening energy demand outlook remains the primary driver behind oil decline.
- Investors await Baker Hughes' weekly US Oil Rig Count data.
Crude oil prices continue to fall ahead of the weekend. After closing the sixth straight day in the negative territory, the barrel of West Texas Intermediate extended its slide during the first half of the day on Friday and was last seen losing 1.4% on the day at $62.97. For the week, WTI is down more than 7%.
Eyes on Baker Hughes data
The worsening demand outlook amid renewed concerns over the rising number of coronavirus cases, especially in Asia, weighs on oil prices.
Earlier in the week, the API and the EIA both reported bigger-than-expected draws in US crude oil inventories but these figures failed to help WTI stage a meaningful rebound.
Commenting on oil's recent action, "spread of the virus in China and other parts of Asia will likely weigh on demand in short-term," said Danske Bank analysts. "OPEC+ has started normalising its oil output, which will ease the upside potential for oil prices from the sound demand backdrop."
In the meantime, the CME Group's advanced report revealed that open interest in crude oil futures markets continued to shrink on Thursday.
Crude Oil Futures: Probable rebound near term.
Later in the session, Baker Hughes Energy Services will release the weekly US Oil Rig Count data.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
