|Day's Range||55.30 - 55.30|
U.S. oil prices fell 7.5%, their sharpest weekly move lower since July, as the commodity was weighed down by fears that a deadly new virus spreading throughout China and other countries will hurt demand.
OPEC members are discussing a potential extension of the oil production cuts through the end of 2020, an OPEC source told Russian news agency TASS on Friday.
Oil futures ended sharply lower Friday, as worries over potential oversupply were augmented by fears the spread of the coronavirus could undercut demand for crude. West Texas Intermediate crude March delivery fell $1.40, or 2.5%, to end at $54.19 a barrel on the New York Mercantile Exchange, after hitting the lowest level for a most active contract since late October. The U.S. benchmark saw a 7.5% weekly drop, its biggest such fall since a nearly 9% drop in the week ending May 31, according to FactSet.
Crude futures remained sharply lower Friday after oil-field-services company Baker Hughes said the number of U.S. oil rigs rose by 3 from last week to 676. West Texas Intermediate crude for March delivery on the New York Mercantile Exchange was off $1.40, or 2.5%, at $54.19 a barrel in recent trade.
The S&P; 500 went back and forth during the week, showing signs of exhaustion as we are clearly a little overextended. That being said though, there are plenty of support levels underneath that I will be watching.
Crude oil markets got absolutely hammered during the week, forming an extraordinarily bearish candlestick. That being said, we are still well within the overall range that we have been in for the year and a half.
The British pound rallied again during the week, breaking above the 200 week EMA before given back quite a bit of the gains. By doing so, the market has formed a bit of a shooting star, suggesting that perhaps we may have to pull back.
The Australian dollar initially tried to rally during the week, but then reached towards the previous downtrend line. Ultimately, the market is approaching the 0.68 level is a sign of challenging support.
The lack of follow-through to the upside following Thursday’s technical bounce suggests the absence of buyers, since the move was likely fueled by profit-taking and short-covering.
Crude prices sank more than 2% on Friday and Brent logged its biggest weekly decline in more than a year as concerns that a coronavirus will spread farther in China, the world's second-largest oil consumer, curbing travel and oil demand. "It all about the coronavirus all the time, and we're not getting signs that things are getting any better," said Phil Flynn, an analyst at Price Futures Group in Chicago. Health authorities fear the infection rate could accelerate over the Lunar New Year holiday this weekend, when millions of Chinese travel.
Monaco-based oil and gas consultancy Unaoil paid $6 million (4.6 million pounds) in bribes to secure Iraqi oil contracts after the fall of Saddam Hussein, a London court heard on Thursday. In the trial, which has just begun, two former Unaoil managers and an ex-sales chief of Dutch-based energy services company SBM are accused of conspiring to bribe top Iraqi officials to secure lucrative projects. The high-profile case revolves around how Iraq sought to more than double oil production after the overthrow of Hussein in 2003.
Guyana's government next month plans to begin a search for an oil company or trading firm to market its share of the South American country's crude, the director of the Department of Energy, Mark Bynoe, said in an interview. The government is entitled to a portion of the light, sweet crude that a consortium led by Exxon Mobil Corp began producing last month after making 15 discoveries in recent years. The finds are set to transform the economy of Guyana, an impoverished country of fewer than 800,000 people.