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Oil Futures Settle Sharply Higher

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Oil Futures Settle Sharply Higher

Crude oil prices edged higher on Friday, but still ended the week with a big loss due to lingering worries about the outlook for energy demand.

Excess supply in global oil market and fears that energy demand may not pick up any significantly in the near to medium term continued to weigh on the commodity.

After suffering hefty blows in two straight sessions earlier this week, that pushed the futures contract to sub-zero levels for the first ever time in history, crude oil futures regained some ground on Wednesday and Thursday.

Crude prices recovered due to short-covering and hopes about deeper production cuts, and also due to geopolitical tensions between the U.S. and Iran.

Today, West Texas Intermediate Crude oil futures for June ended up $0.44, or 2.7%, at $16.94 a barrell. On Thursday, the contract ended nearly 20% up.

For the week, oil futures lost more than 32%.

According to a report from Baker Hughes, the number of active U.S. rigs drilling for oil dropped by 60 to 378 this week, marking a sixth straigth weekly drop.

The material has been provided by InstaForex Company – www.instaforex.com