Oil prices plummet as oversupply concerns return

India Infoline News Service | Mumbai | October 07, 2017 11:02 IST

Oil prices witnessed a slip of 3% on Friday, after a week of profit-taking and a comeback of oversupply concerns pushed the markets lower.

Oil prices witnessed a slip of 3% on Friday, after a week of profit-taking and a comeback of oversupply concerns pushed the markets lower.

US West Texas Intermediate (WTI) crude fell 2.95%, settling at USD 49.29, breaking a four-week winning streak. It closed down nearly 4.5% in the worst performing week since March 10.

The prospect of extended oil production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russia had supported prices on Thursday.

Russia clarified remarks on the oil market made by President Vladimir Putin earlier this week, saying he did not propose extending a global oil output cut deal but said he recognised it was a possibility on Friday.

A stronger dollar also led to further losses in the oil market on Friday. The dollar hit a 10-week high after data showing the largest gain in US wages since December 2016 bolstered bets on an interest rate hike by year-end.

Futures held their losses after a leading oilfield services firm reported the number of oil rigs operating in US fields fell by 2 in the latest week. The rig count stood at 748, compared with 428 at this time last year.

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