Published Date : Nov 27, 2015
Prices of crude oil dropped on Friday, after the month’s losses held up at just over 8%. The crude prices were felled by disappointing data on Chinese economy and growing concerns regarding the oversupply of crude.
A stronger U.S. dollar also added to the oil concerns, as it kept contracts that were enabled by the greenback even more expensive for those who held other currencies. The dollar strengthened despite a quiet day of trading after Thanksgiving Day in the U.S.
Brent fell to US$45.42 per barrel, or 4 cents, after steadying up at US$45.46 per barrel, or down 71 cents, in the preceding session.
The U.S. benchmark for crude, West Texas Intermediate, showed that futures fell by 1.16%, or 50 cents, to US$42.54 per barrel. The indices are up 5.3% till now in the current week, although they dropped 8.7% after the start of November.
Chinese industrial profits dropped 4.6% in October since the 2014 readings for the same month. The data was shared by the Chinese statistics bureau on Friday, and showed a slip for the fifth week in a row.
On the same day, ANZ noted that the stocks data created by the U.S. did very little to propel the market. The note was referring to the statistics showed by the Energy Information Administration recently. It displayed the digits for U.S. crude inventories, which has increased 1 mn barrels in the previous week. The stockpile was marginally below the expectations set by analysts.
Both U.S. crude and Brent have earned, compared to the closes made last week, mostly due to geopolitical issues in the Middle East, after a Russian warplane was shot down by Turkey.