Investing.com – Yo-yo days are back in oil, with the market falling as much in a day as it rose previously, as global growth fears offset bullish energy fundamentals.
After Thursday’s higher close of 2.8%, spurred by a surprise inventory drawdown at the delivery hub for U.S. crude, oil prices settled down almost that much on Friday as signs of slowing growth in China dampened hopes for demand.
China’s worse-than-expected retail sales saw their weakest growth in 15 years, while industrial output in the Asian giant rose the least amount in nearly three years, casting further doubt over demand from the world’s second-largest economy. The result was risk aversion across financial markets that put Wall Street’s S&P 500 on track to a second weekly loss.
“Trade war and recession fears are becoming part of our daily market swings,” Phil Flynn, senior market analyst at the Price Futures Group in Chicago said.
U.S. West Texas Intermediate crude settled down $1.38, or 2.6%, at $51.20 per barrel. It was down by a similar percentage on the week.
U.K. Brent, the global benchmark for crude, fell by $1.40, or 2.1%, to $60.05 by 2:48 PM ET (19:48 GMT)
Even a third-straight weekly drop in the U.S. oil rig count didn’t provide much help to oil.
Read more at : https://www.investing.com/news/commodities-news/oil-down-3-erasing-thursday-gains-as-china-fears-grip-market-1722198
