Oil prices record a weekly loss for the third time in a row

Friday, June 07, 2024 - 20:16
Point Trader Group

Crude oil futures recorded a third consecutive weekly loss at the end of trading on Friday, June 7 due to fears that demand may decline even with OPEC+ plans to increase production.

Brent crude futures settled at $79.62 per barrel, down 25 cents, or 0.31%, during Friday trading.

US crude futures contracts also recorded $75.53 per barrel at settlement, down two cents, or 0.03%, during Friday trading.

US crude oil and benchmark Brent crude saw selling off earlier in the week after OPEC+ members announced they would begin phasing out 2.2 million barrels of daily production cuts starting in October. Weak US manufacturing data and weak private payrolls also weighed on the market.

Oil prices have rebounded over the past two days on hopes that lower interest rates will boost demand, but the two benchmark crude oils are still down about 2% during the week, according to CNBC.

The OPEC+ production increase will begin when refineries are offline for fall maintenance, then ramp up as demand typically weakens as winter approaches.

However, oil market analysts widely described the sell-off this week as an overreaction, noting that the OPEC+ production increase would not begin until October. Meanwhile, oil balances should shrink as cuts continue through the summer season when demand typically rises, according to JPMorgan.

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