Oil edges higher but on track for big weekly loss

Published 04/10/2019, 02:42
Updated 04/10/2019, 02:50
© Reuters.  Oil edges higher but on track for big weekly loss
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By Roslan Khasawneh

SINGAPORE, Oct 4 (Reuters) - Oil futures edged higher on

Friday but were on track for a large weekly loss on fears that

slower global economic growth will hurt fuel demand, while Saudi

Arabia said it has fully restored oil output after recent

attacks.

Brent crude oil futures LCOc1 rose 8 cents, or 0.1%, to

$57.79 a barrel by 0138 GMT, while U.S. West Texas Intermediate

(WTI) crude CLc1 futures rose 12 cents, or 0.2%, to $52.57 a

barrel.

For the week, Brent futures were down 6.7%, marking its

largest weekly loss since December, while WTI was down 6%, its

biggest decline since July.

Weak U.S. services sector and jobs growth data on Thursday

added to worries about global oil demand and exacerbated fears

that a protracted U.S.-China trade war could push the global

economy into a recession. "Concerns about global oil demand are rising, and next

week's U.S.-China trade talks, the significant X factor, will be

particularly important, given the sharp drop in the oil price

over the last week," said Stephen Innes, Asia Pacific market

strategist at AxiTrader.

Saudi Arabia's energy minister Prince Abdulaziz bin Salman

also said on Thursday the world's top crude oil exporter has

fully restored oil output after attacks on its facilities last

month that knocked out more than 5% of global oil supply.

"The mood wasn't helped by news that Saudi Arabia has

managed a speedy recovery from the recent attacks," ANZ Bank

said in a note on Friday.

However, recent data showing a slowdown in U.S. shale output

and drilling activity could lend some support. "Continued falls in drilling activity has seen monthly

growth in U.S. shale oil output fall, from 150 thousand barrels

per day (kbpd) to only 50 kbpd," said ANZ.

"This is likely to linger well into 2020."

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