By Adedapo Adesanya
Oil prices failed to keep up gains for the seventh straight session on Friday as the major oil futures recorded drops after six sessions of pointing upward, following pressure from panic sales ahead of the festive period.
The rise in prices had come as the tensions of an escalating trade war between the US and China eased and lifted investors’ confidence and the outlook for global economic growth.
However, on Friday, December 20, prices depreciated as Brent crude, the international benchmark, which had traded close to $67 in the week, went down by 0.81 percent equivalent to 53 cents to trade at $65.06 per barrel.
Likewise, the US West Texas Intermediate (WTI) crude moved down more than one percent (1.34 percent) equivalent to 82 cents to exchange at $60.36 per barrel.
Despite Friday’s drop, the progress recorded in the 18 months long trade dispute between the United States and China, the world’s two biggest oil consumers, has boosted expectations for higher energy demand next year.
Business Post had reported that China on Thursday announced a list of import tariff exemptions for six products from the United States, almost a week that both countries announced a phase-one trade deal that has been confirmed will be signed at the beginning of January 2020.
According to analysts, the rush in selling ahead of the Christmas and New Year’s Day holidays affected demand and pushed prices lower on Friday as there were more sellers than buyers.
Also, a rise in the US oil rig count, an indicator of future supply from the world’s largest producer, further put pressure on prices as companies added 18 oil rigs in the week to December 20 making the total count to 685 rigs.
Meanwhile, oil sector workers in France could decide whether to halt production at refineries to scale up a protest as this would affect prices next week.
Modupe Gbadeyanka