Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian
CNBC/Reuters: Oil prices slide as supply fears recede
Oil dropped by more than $2 a barrel on Friday, on track for a second weekly decline, due to concern about weakened demand in China and further increases to U.S. interest rates.
Brent crude was down $2.80, or 3.1%, at $86.97 a barrel by 11:48 a.m. EST, having touched its lowest since Sept. 28 at $85.80. U.S. West Texas Intermediate (WTI) crude was down $2.79, or 3.4%, at $78.85.
Both benchmarks are heading for a second weekly loss, with Brent on track for about a 9% decline and WTI heading for a 10.5%.
As part of the rout, the market structure of both oil benchmarks shifted in ways that reflect dwindling supply concerns.
Read more ….
Update #1: Oil Rout Intensifies As China Cuts Oil Purchases (OilPrice.com)
Update #2: Oil Falls Below $80 With Bulls Fleeing as Physical Demand Slows (Bloomberg)
WNU Editor: I for one am hoping that oil prices will crash. But a collapse will probably be due to a global recession, and that in turn will create other problems.