Oil prices tumbled on Friday, hit by concern over reduced demand as U.S. refineries saw a pokey recovery from flooding as a result of Hurricane Harvey.
Prices were further weighed as uncertainty gripped the electricity market above the potential impact of Hurricane Irma mainly because it approached the U.S.
U.S. West Texas Intermediate (WTI) crude futures sank $1.61, or around 3.3%, to finish at $47.48 a barrel by close of trade. It had become the best daily loss since July, but prices still ended a few days up 19 cents, or 0.4%, gain their first weekly get more five weeks.
Brent crude, the benchmark for oil prices outside of the U.S., slipped 71 cents, or roughly 1.3%, to stay at $52.75 a barrel. The international benchmark closed a few days which includes a gain of $1.03, or around 1.9%, after rising to a more than four-month high of $54.87 on Thursday.
Meanwhile, gasoline futures slumped 1.3 cents, or 0.8%, to absolve at $1.647 on Friday. It closed around 10.0 cents, or 5.7%, lower for that week.
Heating oil finished down 2.0 cents, or 1.1%, at $1.765 a gallon, nevertheless ending roughly 1.1% higher for any week.
Natural gas futures plunged 9.1 cents, or 3.1%, to stay at $2.890 per million British thermal units. It saw a weekly reduction in nearly 6%.
Two weeks after storm system Harvey bumped out roughly one fourth of U.S. oil refining capacity, refineries along the Gulf coast are already slow to restart, weighing on demand for oil, the principle input at refineries.
The dip in demand was reflected from a report through the Energy Information Administration (EIA) on Thursday showing crude stockpiles rose somebody in charge of in ten weeks.
Harvey’s impact has also been felt in oil production. Oilfield services firm Baker Hughes said on Friday its weekly count of oil rigs operating while in the U.S. declined by 3 to 756.
But the slowdown in refining and output should be temporary.
In the week ahead, market participants will eye fresh weekly specifics of U.S. stockpiles of crude and refined products and Wednesday to help promote weigh just what impact of brand new storm activity was on supply and demand.
Oil traders will also consentrate on monthly reports with the Organization of Petroleum Exporting Counties as well as the International Energy Agency to evaluate global oil supply and demand levels. Your data will deliver traders a greater picture of whether a universal rebalancing has taken put in place the oil market.
Ahead in the coming week, Investing.com has compiled an index of these and various significant events more likely to modify the markets.
Tuesday, September 12
The Organization of Petroleum Exporting Counties will publish its monthly assessment of oil markets.
The American Petroleum Institute, a business group, would be to publish its weekly set of U.S. oil supplies.
Wednesday, September 13
The International Energy Agency will release its monthly set of global oil supply and demand.
Later on, the U.S. Energy Information Administration is to release weekly data on oil and gasoline stockpiles.
Thursday, September 14
The U.S. government is defined to manufacture a weekly set of natural gas supplies in storage.
Friday, September 15
Baker Hughes will release weekly data for the U.S. oil rig count.