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This article is more than 1 month old.

Oil prices fall on profit taking, demand outlook after Evergrande debt default

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This week, the oil prices recovered nearly half the losses it suffered since the Omicron outbreak on Nov 25.

Oil prices fall on profit taking, demand outlook after Evergrande debt default
Oil prices fell on Friday as traders booked profits after a strong run-up this week. Benchmark Brent and West Texas Intermediate (WTI) gained more than 6 percent this week, even after the profit-taking, their first weekly gain in seven weeks.
WTI crude futures 0.1 percent to $70.87 a barrel at 0150 GMT, after sliding 2 percent in a volatile session the previous day. Brent crude futures fell to $74.38 a barrel after falling 1.9 percent on Thursday.
This week, the oil prices recovered nearly half the losses it suffered since the Omicron outbreak on Nov 25. However, sellers came in overnight after ratings agency Fitch downgraded property developers China Evergrande Group and Kaisa Group, saying they had defaulted on offshore bonds, reinforcing fears of a potential slowdown in China's property sector, as well as the broader economy of the world's biggest oil importer.
In addition, headlines about a Japanese study showing Omicron is more than four times as transmissible as the Delta variant also sparked some selling, OANDA analyst Jeffrey Halley said.
"Oil's had a massive run - it was an excuse for some of the short-term money to lock in some profits," Reuters quoted Halley ad saying.
A stronger dollar, rising ahead of US inflation data due later on Friday, also weighed on oil prices. Oil typically falls when the dollar firms as it makes oil more expensive for those holding other currencies.
The inflation figures are expected to lead to a push for a US rate hike as early as March 2022.
-With agency inputs
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