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Oil settles sharply lower as supply fears grip market

Friday, 1 Nov 2013 | 2:34 PM ET
Workers for Raven Drilling work twelve hour days fourteen days straight, staying at a camp nearby, followed by fourteen days.
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Workers for Raven Drilling work twelve hour days fourteen days straight, staying at a camp nearby, followed by fourteen days.

Oil prices fell broadly on Friday, heading for a large weekly percentage decline, as a strong dollar and ample supplies outweighed concerns about a drop in Libyan crude exports.

U.S. crude oil futures sank to the lowest since late June, while Brent was on track for one of its largest daily percentage losses in more than one month. Brent's steeper losses narrowed its premium over WTI by around 80 cents from the previous session's close, after it hit a seven-month high in the previous session.

An industry report showing the U.S. manufacturing sector expanded at its fastest pace in 2-1/2 years in October strengthened the dollar, which weighed on oil prices. Dollar strength makes commodities priced in the greenback more expensive for overseas investors.

This is as good as it gets for China: HSBC
Frederic Neumann, MD & Co-Head of Asian Economics Research at HSBC says China's economy is still holding up after Friday's two separate readings of factory activity.

Brent crude plunged nearly 2.5 percent to trade under $107 a barrel. Brent had fallen $1.02 in the previous session, when traders booked profits, and was up less than $1 for the week so far.

U.S. oil lost $1.77 to end U.S. trading at $94.81 per barrel, its fourth consecutive week of losses and its longest losing streak since June 2012.

Concerns over supply from Libya wavered as North Sea oil fields returned from maintenance, analysts said.

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