Oil Stock Markets
Oil prices on Monday extended declines from the end of last week amid a
wider market sell off and a stronger dollar, with Brent crude falling to
its lowest in nearly a month.
Other markets dropped as investors were spooked by Friday’s payrolls report from the United States, which showed wages growing at their fastest pace in more than 8-1/2 years, fuelling inflation expectations USIL5YF5Y=R.
Brent LCOc1 was down 68 cents, or 1 percent, at $67.91 a barrel at 0344 GMT, after falling 1.5 percent on Friday. Brent’s weekly drop was 2.75 percent last week.
U.S. West Texas Intermediate (WTI) crude CLc1 declined 72 cents to $64.73 a barrel, after dropping 0.5 percent in the previous session. WTI fell by 1 percent during the last week.
Asian shares were down the most in more than a year on Monday as fears of resurgent inflation battered bonds.
Wall Street dropped last week from record highs as inflation concerns sparked speculation that central banks globally might be forced to tighten policy more aggressively.
The three major U.S. indexes capped their worst weekly losses in two years, after closing at record highs the previous week.
Rising U.S. oil production has also helped push down oil prices, undermining attempts by the Organization of the Petroleum Exporting Countries to support prices.
Data from the U.S. government last week showed that output climbed above 10 million barrels per day in November for the first time since 1970, as shale drillers expanded operations after gains in oil prices last year.
U.S. energy companies did add oil rigs for a second week in a row last week, energy services company Baker Hughes Inc reported on Friday. Drillers added six oil rigs in the week to Feb. 2, bringing the total to 765. RIG-OL-USA-BHI
Hedge funds and money manager reduced last week their bullish positions on U.S. crude, cutting their net-long positions from a record after three weeks of increases.
The speculator group cut its combined WTI futures and options positions on New York and London exchanges by 18,365 contracts to 531,235 in the week to Jan. 30, the Commodity Futures Trading Commission reported on Friday.
Other markets dropped as investors were spooked by Friday’s payrolls report from the United States, which showed wages growing at their fastest pace in more than 8-1/2 years, fuelling inflation expectations USIL5YF5Y=R.
Brent LCOc1 was down 68 cents, or 1 percent, at $67.91 a barrel at 0344 GMT, after falling 1.5 percent on Friday. Brent’s weekly drop was 2.75 percent last week.
U.S. West Texas Intermediate (WTI) crude CLc1 declined 72 cents to $64.73 a barrel, after dropping 0.5 percent in the previous session. WTI fell by 1 percent during the last week.
Asian shares were down the most in more than a year on Monday as fears of resurgent inflation battered bonds.
Wall Street dropped last week from record highs as inflation concerns sparked speculation that central banks globally might be forced to tighten policy more aggressively.
The three major U.S. indexes capped their worst weekly losses in two years, after closing at record highs the previous week.
Rising U.S. oil production has also helped push down oil prices, undermining attempts by the Organization of the Petroleum Exporting Countries to support prices.
Data from the U.S. government last week showed that output climbed above 10 million barrels per day in November for the first time since 1970, as shale drillers expanded operations after gains in oil prices last year.
U.S. energy companies did add oil rigs for a second week in a row last week, energy services company Baker Hughes Inc reported on Friday. Drillers added six oil rigs in the week to Feb. 2, bringing the total to 765. RIG-OL-USA-BHI
Hedge funds and money manager reduced last week their bullish positions on U.S. crude, cutting their net-long positions from a record after three weeks of increases.
The speculator group cut its combined WTI futures and options positions on New York and London exchanges by 18,365 contracts to 531,235 in the week to Jan. 30, the Commodity Futures Trading Commission reported on Friday.
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