Investing.com - New York-traded crude oil futures came under heavy selling pressure on Friday, as concerns over the global economic outlook and some profit-taking ahead of the long holiday weekend weighed on prices.
On the New York Mercantile Exchange, light sweet crude futures for delivery in March fell 1.25% Friday to settle the week at USD95.95 a barrel by close of trade.
Despite Friday’s steep decline, New York-traded oil futures eased up a modest 0.1% on the week.
Nymex floor trading will remain closed Monday for the Presidents’ Day holiday.
Concerns over the global economic outlook and the impact on future oil demand prospects dampened the appeal of the commodity.
Official data on Thursday showed that euro zone gross domestic product contracted by 0.6% in the three months to December, compared to expectations for a 0.4% decline.
It was the fastest rate of decline since 2009 and marked a third consecutive quarter of contraction.
Germany’s economy, the euro zone’s largest, contracted by 0.6% in the in the fourth quarter, more than expectations for a 0.5% drop on declining exports and investment.
Meanwhile, official data showed that Japan’s economy contracted by 0.1% in the fourth quarter, compared to expectations for an uptick of 0.1%.
In the U.S., data on Friday showed that industrial production contracted by 0.1% in January, missing expectations for a 0.2% rise and well below a 0.4% increase the previous month.
The downbeat data overshadowed solid consumer sentiment figures.
In a preliminary report, the University of Michigan said that its index of consumer sentiment rose to 76.3 in February from 73.8 the previous month, well above expectations for a gain to 74.8.
The data came after the Federal Reserve of New York said that its index of manufacturing activity improved far more-than-expected in February, rising to 10.0 from a reading of minus 7.8 the previous month.
A broadly stronger U.S. dollar also contributed to losses, as investors monitored comments from a meeting of the Group of 20 nations, which gathered in Moscow for a two-day meeting.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, ended the week at 80.55, hovering below the previous session’s five-week high.
Some profit-taking also weighed, as investors locked in gains from an impressive rally which took prices close to a five-month high of USD98.08 a barrel on Wednesday.
Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for March delivery eased down 0.2% Friday to settle the week at USD117.66 a barrel.
The London-traded Brent contract lost 0.8% over the week, while the spread between the Brent and the crude contracts stood at USD21.71 a barrel.
The European-benchmark drew support from reports that United Nations inspectors continue to butt heads with Iran regarding inspection of that country’s nuclear facilities.
In the week ahead, oil traders will be awaiting Wednesday’s minutes of the Federal Reserve’s January meeting. Meanwhile, euro zone manufacturing activity and Germany’s Ifo business climate index will be closely watched.
Mainland Chinese markets were set to reopen Monday following the Lunar New Year holidays, while markets in the U.S. are to remain closed for the President’s Day holiday.
On the New York Mercantile Exchange, light sweet crude futures for delivery in March fell 1.25% Friday to settle the week at USD95.95 a barrel by close of trade.
Despite Friday’s steep decline, New York-traded oil futures eased up a modest 0.1% on the week.
Nymex floor trading will remain closed Monday for the Presidents’ Day holiday.
Concerns over the global economic outlook and the impact on future oil demand prospects dampened the appeal of the commodity.
Official data on Thursday showed that euro zone gross domestic product contracted by 0.6% in the three months to December, compared to expectations for a 0.4% decline.
It was the fastest rate of decline since 2009 and marked a third consecutive quarter of contraction.
Germany’s economy, the euro zone’s largest, contracted by 0.6% in the in the fourth quarter, more than expectations for a 0.5% drop on declining exports and investment.
Meanwhile, official data showed that Japan’s economy contracted by 0.1% in the fourth quarter, compared to expectations for an uptick of 0.1%.
In the U.S., data on Friday showed that industrial production contracted by 0.1% in January, missing expectations for a 0.2% rise and well below a 0.4% increase the previous month.
The downbeat data overshadowed solid consumer sentiment figures.
In a preliminary report, the University of Michigan said that its index of consumer sentiment rose to 76.3 in February from 73.8 the previous month, well above expectations for a gain to 74.8.
The data came after the Federal Reserve of New York said that its index of manufacturing activity improved far more-than-expected in February, rising to 10.0 from a reading of minus 7.8 the previous month.
A broadly stronger U.S. dollar also contributed to losses, as investors monitored comments from a meeting of the Group of 20 nations, which gathered in Moscow for a two-day meeting.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, ended the week at 80.55, hovering below the previous session’s five-week high.
Some profit-taking also weighed, as investors locked in gains from an impressive rally which took prices close to a five-month high of USD98.08 a barrel on Wednesday.
Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for March delivery eased down 0.2% Friday to settle the week at USD117.66 a barrel.
The London-traded Brent contract lost 0.8% over the week, while the spread between the Brent and the crude contracts stood at USD21.71 a barrel.
The European-benchmark drew support from reports that United Nations inspectors continue to butt heads with Iran regarding inspection of that country’s nuclear facilities.
In the week ahead, oil traders will be awaiting Wednesday’s minutes of the Federal Reserve’s January meeting. Meanwhile, euro zone manufacturing activity and Germany’s Ifo business climate index will be closely watched.
Mainland Chinese markets were set to reopen Monday following the Lunar New Year holidays, while markets in the U.S. are to remain closed for the President’s Day holiday.