US Crude Oil Futures Drop 1.5% on Disappointing Data
U.S. oil futures prices tumbled 1.5% Friday as concerns about a stalling European economy sparked some profit-taking ahead of the long weekend, traders and analysts said.
News from overseas gave the market little reason to hope for an improving economy and more oil demand. Retail sales in the U.K. fell 0.6% in January, the biggest monthly decline in nine months and well short of expectations for a 0.6% increase. A decline in euro-zone imports and exports in December added to the pessimism, analysts said.
The weak European data inspired selling among traders who had ridden the oil market rally that brought prices to a two-week high of $97.31 Thursday, said Gene McGillian, broker and analyst at Tradition Energy.
"The market had a significant rally the rest of this week and...seemed ready" for a selloff, said Andy Lebow, analyst at Jefferies
"WTI finally came under some liquidation pressures," Mr. McGillian added.
The situation wasn't helped by lower-than-expected U.S. industrial production data for January. Output dropped 0.1%, versus expectations of a 0.2% gain.
Light, sweet crude oil for March delivery on the New York Mercantile Exchange settled lower by $1.45, or 1.5%, at $95.86 a barrel. Brent futures on the IntercontinentalExchange settled 19 cents, or 0.2%, lower at $117.66 a barrel.
The slide in oil prices contrasted with further gains in the benchmark U.S. gasoline contract. March reformulated gasoline blendstock futures, or RBOB, on the Nymex exchange settled 1.79 cents, or 0.5%, higher at $3.1345 a gallon. The price is up 15% from the front-month low for 2013 hit Jan. 15.
The RBOB gains came as many refineries were scaling back production amid maintenance work. Much of the price increases could be chalked to the upcoming switch to costlier summer-blended grades of gasoline in April, said Phil Flynn, analyst with Price Futures Group. Gasoline formulas are adjusted seasonally under the Clean Air Act to reduce smog formation when the weather warms up.
Heating oil futures were down 0.4% to $3.2104 a gallon.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea