Crude oil prices declined sharply on Friday, with traders choosing to take some profits after prices shot up by nearly 6% over the previous three sessions.
Prices fell also due to possibility of a fall in energy demand due to the impact of Hurricane Dorian, now graded a Category 3 major storm. The storm is expected to gather strength and make a landfall in Florida late Monday as a Category 4 hurricane.
According to reports, a few refineries along the Gulf Coast are keeping a close eye on Hurricane Dorian.
According to a Reuters survey, OPEC’s oil output rose 80,000 barrels per day in August, the first monthly increase this year.
Also, Russian Energy Minister Alexander Novak is reported to have said Russia’s oil output cuts in August will be slightly below those agreed to under the deal between OPEC and non-OPEC producers.
West Texas Intermediate Crude oil futures for October ended down $1.61, or about 2.8%, at $55.10 a barrel.
On Thursday, WTI Crude oil futures ended up $0.93, or 1.7%, at $56.71 a barrel, after gaining about 2.4% and 1.6% on Tuesday and Wednesday, respectively.
Oil futures added 1.7% in the week, but lost over 6% in the month of August.
Oil futures climbed higher in the previous three sessions on falling inventories and on hopes energy demand will pick up on the emergence of some positive developments from upcoming U.S.-China trade talks.
The material has been provided by InstaForex Company – www.instaforex.com