Crude oil futures settled lower on Thursday, extending losses to an eighth straight session, amid rising possibilities of a drop in near term energy demand.
Despite geopolitical concerns and OPEC-led production cuts, crude oil supply has not been any significantly hit. Meanwhile, rising fears of a recession after recent data suggested continued contraction in manufacturing activity in the U.S. and Europe have raised concerns about the outlook for energy demand.
West Texas Intermediate crude oil futures for November ended down $0.19, or about 0.4%, at $52.45 a barrel, the lowest settlement in nearly two months.
With prices falling for an eighth day, oil futures have suffered their longest losing streak, since posting losses for 12 straight sessions in the first half of November last year.
On Wednesday, WTI crude oil futures for November ended down $0.98, or 1.8%, at $52.64 a barrel.
Data from the Energy Information Administration on Wednesday showed crude oil stockpiles in the U.S. to have risen by 3.1 million barrels last week, nearly twice the expected jump.
A report from the Institute for Supply Management that showed the U.S. service sector to have slowed more than anticipated in the month of September added to concerns about growth in the world’s largest economy.
The ISM said its non-manufacturing index dropped to 52.6 in September after climbing to 56.4 in August. While a reading above 50 still indicates service sector growth, the index has been expected to show a more modest dip to 55.0.
With the much bigger than expected decrease, the non-manufacturing slumped to its lowest level since hitting 51.8 in August of 2016.
The material has been provided by InstaForex Company – www.instaforex.com