Oil futures contracts closed lower this Friday 22nd, with renewed fears about demand for gasoline.
Weak results from purchasing manager indices in the world's largest economies also weighed on the commodity.
Since April, it is the first time that futures contracts for the Petroleum WTI closes below $95 a barrel.
On the New York Mercantile Exchange, WTI crude for September delivery fell 1.71% to trade at $94.70 a barrel.
On the Intercontinental Exchange, the barrel of Brent for October was down 1.11%, trading at US$ 98.38.
In the week, the accumulated drop was 2.96% and 2.75%, respectively, for the most liquid contracts.
The composite PMI for July signaled contraction in the eurozone and hit 17- and 26-month lows in the UK and US, respectively.
Oanda analyst Edward Moya says the session was marked by headlines full of bearish sentiment for oil: “Global PMIs lead to recession concerns, production in Libya is increasing and profits point to weakening consumption”.
For Moya, oil may settle around US$ 95 dollars, but the deterioration in the outlook for oil demand should prevent a sustained movement above the level of US$ 100 dollars per barrel.
Tyche Capital Advisors managing member Tariq Zahir predicts that oil will recover the US$100 per barrel mark in the short term and notes that energy prices are “extremely volatile”.
For Zahir, the risk for the oil market is positive, given the hurricane season in the Atlantic, which could impact supply.
During the session, the asset gained momentum and advanced momentarily, supported by a weak dollar against rivals. The movement, however, did not hold.
Sources: investing.com
