Breaking News
0

Crude oil futures - weekly outlook: April 6 - 10

CommoditiesApr 05, 2015 07:57AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Crude oil futures plunge after Iran deal

Investing.com - Crude oil futures plunged sharply on Thursday, after Western powers negotiated a tentative nuclear deal with Tehran, which could add more crude to an already oversupplied market.

On the ICE Futures Exchange in London, Brent for May delivery dropped $2.15, or 3.77%, on Thursday to settle at $54.95 a barrel by close of trade. Commodity markets remained closed on Friday for Good Friday.

For the week, Brent futures declined $1.01, or 2.59%, snapping two straight weeks of gains.

Iran reached a solution on key parameters of a deal regarding its nuclear program with a group of Western leaders late on Thursday.

As part of the preliminary accord, the U.S. and the European Union agreed to loosen financial and economic sanctions against Iran that have restricted the nation's oil supply over the last four years.

The deal has exacerbated concerns among energy traders that a glut of Iranian oil could depress prices in a global market that is already saturated with an oversupply.

Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in May slumped 95 cents, or 1.9%, on Thursday to settle at $49.14 a barrel.

Despite Thursday's losses, Nymex oil prices rose 57 cents, or 0.55%, during the holiday-shortened week, amid speculation an ongoing collapse in rigs drilling for oil in the U.S. will result in lower production.

Industry research group Baker Hughes (NYSE:BHI) said Thursday that the number of rigs drilling for oil in the U.S. fell by 11 last week to 802, the 17th-straight week of declines.

Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $5.81 a barrel by close of trade on Friday, compared to $7.54 in the preceding week.

In the week ahead, markets outside the U.S. will remain closed on Monday for the Easter holiday. The U.S. is to release what will be closely watched data on service sector activity on Monday and the Federal Reserve is to publish the minutes of its March meeting on Wednesday.

On Friday, the Labor Department reported that the U.S. economy added 126,000 new jobs in March, the smallest increase since December 2013. Economists had forecast jobs growth of 245,000 last month.

The surprisingly weak report added to concerns over the outlook for economic growth after other recent economic data pointed to a slowdown at the start of the year.

A slowing labor market could prompt the Federal Reserve to reconsider a planned increase in interest rates. Last month the Fed indicated that the first rate increase could come as soon as June, but added that continued improvement in labor markets would be a key factor it would consider.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, April 6

Markets in Australia, New Zealand, China, Europe and the U.K. will remain closed for holidays.

In the U.S., the Institute of Supply Management is to release data on service sector activity.

Tuesday, April 7

The Reserve Bank of Australia is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.

Later in the day, the American Petroleum Institute, an industry group, is to publish its weekly report on oil supplies.

Wednesday, April 8

The Bank of Japan is to announce its benchmark interest rate and publish its rate statement. There will be a closely watched press conference following the rate announcement.

The U.S. is scheduled to publish its weekly government report on oil inventories. Later Wednesday, the Federal Reserve is to publish the minutes of its March meeting.

Thursday, April 9

The Bank of England is to announce its benchmark interest rate.

Later in the day, the U.S. is to release the weekly report on initial jobless claims.

Friday, April 10

China is to publish figures on both consumer and producer price inflation.

The U.S. is to round up the week with a report on import prices.

Crude oil futures - weekly outlook: April 6 - 10
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email