Investing.com - Oil traders will stay fixated on global crude supplies and the outlook for energy demand in the week ahead after disappointing manufacturing data from the U.S. and China stoked concerns over demand growth.
Oil futures settled sharply lower on Friday, as declines in the U.S. ISM manufacturing index, which came on the heels of underwhelming Chinese factory activity, fed worries over a potential slowdown in energy demand.
The U.S. and China are the world’s two largest oil consuming nations and manufacturing numbers are used as indicators for fuel demand growth.
Prices were also dragged down by surging U.S. crude oil production, which has risen by more than 2 million barrels per day (bpd) over the last year, to an unprecedented 12.1 million bpd.
U.S. West Texas Intermediate crude tumbled $1.42, or around 2.5%, to settle at $55.80 a barrel by close of trade. WTI earlier rose to its strongest level since Nov. 16 at $57.88.
For the week, the U.S. benchmark lost about 2.6%.
Meanwhile, International Brent crude oil futures ended Friday's session down $1.24, or roughly 1.9%, at $65.07 a barrel. Brent prices saw a decline of approximately 3% on the week.
Still, oil markets remain relatively well supported by supply cuts by the Organization of the Petroleum Exporting Countries (OPEC), which together with some non-affiliated producers like Russia, known as 'OPEC+', agreed late last year to reduce output by 1.2 million barrels per day (bpd) to prop up prices.
After ending 2018 in freefall, oil prices have rallied more than 20% to start the year.
Ahead of the coming week, Investing.com has compiled a list of the main events likely to affect the oil market.
Tuesday, March 5
The American Petroleum Institute is to publish its weekly update on U.S. oil supplies.
Wednesday, March 6
The U.S. Energy Information Administration will release its weekly report on oil stockpiles.
Friday, March 8
{{0|Baker Hughes}} will release weekly data on the U.S. oil rig count.
-- Reuters contributed to this report