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Oil heads for weekly loss on growing output, demand fears

Oil heads for weekly loss on growing output, demand fears

Mubasher: Oil prices were mixed bag on Friday, as they were on track to record weekly losses of around 4%, as global supply was growing, while uncertainty hanged over demand outlook, according to Reuters.

By 8:13 am GMT, US Nymex crude futures inched up by 0.07% to $54.22 per barrel (pb), and were on course to record a weekly loss of more than 4%, while international benchmark Brent futures declined by 0.22% to $59.49 pb, and they were heading to post a drop of almost 4%.

US crude oil inventories recorded a buildup of 5.7 million barrels in the week ended 25 October, which was more than analysts’ forecasts of a rise of 494,000 barrels only.

Furthermore, US crude output surged by around 600,000 barrels in August, hitting a record of 12.4 million, owning to a 30% increase in Gulf of Mexico production, government data showed on Thursday.

On the demand side, worries over global economic growth continued to hang over markets as officials from the US and China were scrambling to end a 16-month trade conflict that took a heavy toll on the world’s two biggest economies.

“Concerns about the US-China trade dispute have come home to roost,” AxiTrader Asia Pacific market strategist Stephen Innes was quoted by Reuters.

Japanese manufacturing activity hit its weakest level in more than three years last October, data showed on Friday.