Petroleum futures ended notably lower on Friday, snapping a nine-day winning streak, with earnings taking and worries about slowing Chinese economy weighing on the commodity.
Petroleum futures ended down $1.00, or 1.9%, at $51.59 a barrel. On Thursday, petroleum futures ended $0.23, or 0.4%, at $52.59 a barrel, after having rose up 5.2% a session previously.
For the week, oil futures got about 7.6%.
Crude oil costs rallied dramatically over the last nine sessions on news about production cuts by OPEC and some non-OPEC members and amid optimism about the U.S. and China striking a trade offer before the expiry of a 90-day truce concurred upon in early December by the Presidents of the U.S. and China. Data showing decreases in crude stockpiles in the previous number of weeks contributed too to oil’s rise in current sessions.
Prior to that, for much of the last quarter of 2018, petroleum costs were sliding down, losing over 40% from the highs attained in early October.
The three-day trade negotiations between U.S. and Chinese officials at Beijing concluded on Wednesday, with no substantial developments. Nevertheless, hopes stay that the 2 nations will continue to strive for a trade agreement before a March 1 due date.
The U.S. Trade Representative’s workplace said in a declaration after the three-day talks that officials from U.S. and China went over “ways to achieve fairness, reciprocity and balance in trade relations”. China’s ministry of commerce said that the settlements were “comprehensive, careful and deep” without offering specifics.
Information released by the Energy Information Administration on Wednesday revealed U.S. petroleum stockpiles fell by 1.7 million barrels in the week to January 4, compared with analysts’ expectations for a decline of 2.8 million barrel.
A report launched by Baker Hughes today said U.S. energy firms cut oil rigs for a second week in a row as more manufacturers, like Occidental Petroleum Corp, turned conservative in their 2019 drilling plans due to uncertainty over a recovery in unrefined costs.
The oil well count stopped by four in the week to January 11, to 873. The U.S. rig count is still much higher than a year ago when 752 rigs were active.
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