Oil posts biggest weekly loss in 5 months over equities
NEW YORK, November 30, 0007
Oil has registered its biggest weekly loss since May as turmoil in equity trading spilled over into the crude market, said a report.
Futures dropped 4 per cent this week in New York, echoing declines in the S&P 500 Index amid fresh concern about the escalating US-China trade war, reported Bloomberg.
Oil stockpiles in the world’s biggest economy are swelling amid International Energy Agency warnings about growing threats to global energy demand.
“The long oil trade is way too overcrowded and these markets tend to overshoot their supply demand dynamics,” said Phil Streible, senior market strategist at RJ O’Brien Associates.
“We’re seeing liquidation in the oil market because of the spillover effect from the equity market,” he added.
West Texas Intermediate crude for November delivery advanced 37 cents to end the session at $71.34 a barrel on the New York Mercantile Exchange.
Brent for December settlement rose 17 cents to settle at $80.43 on the London-based ICE Futures Europe exchange. It traded at a $9.25 premium to WTI for the same month.
