Oil down around 4% during week ending Nov. 17 on demand fears

Oil prices fell during the week ending Nov. 17, with signs of weaker demand in the world’s largest oil consumers, the US and China.

International benchmark Brent crude traded at $78.48 per barrel at 2.57 p.m. local time (1157 GMT) on Friday, falling by about 3.6% relative to the closing price of $81.43 a barrel on Friday last week.

West Texas Intermediate (WTI), the American benchmark, was trading at $73.83 a barrel at the same time on Friday, down around 4.3% from last Friday’s session, which closed at $77.17 per barrel.

Both benchmarks started the week with the easing of supply concerns after the Iraqi Oil Minister stated on Sunday that he expects to reach an agreement with the Kurdistan Regional Government and foreign oil companies on resuming oil production from the region.

Signs of weakening oil demand on Monday in the two largest oil-consuming countries, the US and China, also supported downward movements.

However, later on Monday, prices saw upticks after the Organization of Petroleum Exporting Countries cited ‘robust major global economic growth trends in healthy oil market fundamentals’ in addition to the expectation of higher demand over the remainder of this year and the next.

Prices were broadly unchanged on Tuesday, as the International Energy Agency also predicted that this year would see a rise in demand and that China, the world’s largest oil importer, would soon see a revival in its industrial sector.

However, weak data from the US and unfolding fears that recession signs in China diminished demand optimism on Wednesday resulted in declines in both benchmarks to four-month lows on Thursday.

The Israeli-Palestinian conflict is a source of supply risk for investors. The uncertainty surrounding the conflict and other factors related to the global oil supply sustain price swings even though the conflict has not yet had an effect on the actual supply of oil.

• International benchmark Brent crude
• West Texas Intermediate (WTI)