Thu, 26 Nov 2020

Oil prices slide as downside risks predominate

Xinhua
24 Oct 2020, 06:18 GMT+10

NEW YORK, Oct. 23 (Xinhua) -- Oil prices moved lower on Friday amid multiple downside risks.

The West Texas Intermediate (WTI) for December delivery lost 79 cents to settle at 39.85 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery decreased 69 cents to 41.77 dollars a barrel on the London ICE Futures Exchange.

The moves followed an upbeat session on the oil market that saw WTI and Brent climb 1.52 percent and 1.75 percent, respectively.

"Though oil prices yesterday recouped some of their heavy losses of the day before, we believe that the downside risks predominate," Eugen Weinberg, energy analyst at Commerzbank Research, said in a note Friday.

"There is little in the way of support from the demand side in view of the extremely high number of new Covid-19 cases worldwide," he said, adding "there is also pressure on prices from the supply side" including an increase in Libyan oil production.

For the week, the front-month contract for WTI crude dropped 3.1 percent, while Brent declined by 2.7 percent.

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