Oil ends lower on supply glut concerns
AFP FILE PHOTO
NEW YORK, United States—Oil prices dropped Friday, leaving the market lower for the week, as a prolonged supply glut weighed on sentiment.
US benchmark West Texas Intermediate (WTI) for delivery in March fell 83 cents to $30.89 a barrel on the New York Mercantile Exchange.
In London, Brent North Sea crude for April delivery, the European benchmark for crude oil, finished at $34.06 a barrel, down 40 cents from Thursday’s settlement.
Friday’s fall closed a volatile week that left WTI and Brent down about two percent and five percent for the period, respectively. The market had made gains over the prior two weeks.
The volatility came amid speculation about a potential meeting between Russia and OPEC that whetted hopes for an agreement that would reduce crude production. Oil prices ended higher only Wednesday this week, when traders gave some credence to the speculation.
News Friday that the number of oil rigs in the field in the United States dropped sharply last week, by 31 rigs as reported by Baker Hughes, did not brighten the market’s outlook.
“WTI couldn’t maintain a rise even with the rig count,” said John Kilduff of Again Capital, pointing to “incredibly negative” fundamentals.
“We’re not seeing anything to pull the market out of its nosedive,” he added.
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