Crude oil records third consecutive weekly loss followed by a volatile week

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Crude oil records third consecutive weekly loss followed by a volatile week

Falling oil prices
Image source: © Designer491 | Megapixl.com

Highlights

  • Crude oil recorded the third consecutive weekly fall on Friday.
  • Both the benchmarks tumbled significantly.
  • The US may release oil from its strategic reserves to cool down heated prices.

Energy producers of the world could have a poor start to the week after oil prices tumbled on Friday. The prices wiped out the gains of the previous session on worries that the US Federal Reserve will boost its plan to enhance interest rates to tame inflation.

January delivery Brent Crude oil futures last traded at US$82.21 per barrel up 0.27%, whereas December delivery WTI crude oil futures traded 0.11% up at US$79.78 per barrel as of 15 November 2021 at 12:03 PM AEDT.

Adding supply from strategic reserves to cool prices

Both the benchmarks tumbled significantly in the third week for the third consecutive week, hit by the strengthening of the dollar. The prices were additionally hit hard on speculations that the US President Joe Biden administration might release oil from its strategic reserves to cool down heated prices.

Crude oil stocks

Crude oil stocks | Source: © Batareykin | Megapixl.com

OPEC along with its allies was under pressure by leading oil-consuming nations across the globe to increase its supply to reduce skyrocketing oil prices. However, the cartel sticks to its original plan of increasing the supply gradually to phase out the ongoing production cuts.

Bottom Line

Crude oil registered the third consecutive weekly loss on Friday on worries that US Federal Reserve will boost its plan to enhance interest rates to tame inflation. Oil prices have recovered magnificently from the lows of the pandemic on the back of solid economic recovery and ease in COVID-19 led restrictions across the globe.

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