Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crude Oil Prices Dip on Profit-Taking After Strong Week

CommoditiesApr 16, 2021 11:53AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- Crude oil prices fell on Friday but stayed comfortably above $60 a barrel, the market apparently settling into a new range on the back of strong economic numbers from the U.S. and China this week.

China’s gross domestic product grew by a record 18.3% year-on-year in the first quarter, a number that was vastly inflated by the comprehensive shutdown of the economy last year in the first wave of the pandemic. In quarter-on-quarter terms, the figures were less impressive, with GDP rising only 0.6% - less than expected. Even so, retail sales and fixed asset investment both performed strongly in March. 

The numbers came a day after U.S. retail sales data for March, which showed a wholesale lack of restraint by American households as the latest round of stimulus checks landed in accounts across the country.  Jobless claims data and, earlier Friday, housing starts and building permit numbers for March have also underpinned confidence in an improving outlook for oil demand. 

"Stimulus measures, amounting to $16 trillion according to IMF, account for 15% of global GDP, supporting the global economy and thus the oil demand recovery," said analysts at Petrologica in a weekly briefing. "There remains downside risk to demand from virus mutations, though there is potential upside if forecasters are underestimating the level of pent up demand."

By 11:45 AM ET (1545 GMT),  U.S. crude futures were down 0,5% at $63.14 a barrel, while Brent futures, the global benchmark, were down 0.2% at $62.81 a barrel.  The declines amounted to little more than profit-taking at the end of a week when both markets have risen nearly 5%.

Prices have traded consistently above $60 since OPEC and the International Energy Agency revised up their forecasts for world demand this year in their respective monthly reports this week. The market has - largely - shrugged off evidence that the pandemic will continue to weigh noticeably on demand in much of the rest of the world outside the two largest economies. Data out of India earlier Friday showed that demand for gasoline, jet fuel and liquefied petroleum gas all slumped in the first half of April under the weight of spreading lockdowns to rein in rampant infection rates. Gasoline demand fell 5% and diesel demand fell 3 percent from March, according to Argus Media.

India, the world's second-biggest net importer of oil, reported 217,000 new cases of Covid-19 on Thursday, a new record high. 

Later Friday, the Commodity Futures Trading Commission will issue its weekly update on net positioning, while the Baker Hughes weekly rig count is due at 1 PM ET.

Crude Oil Prices Dip on Profit-Taking After Strong Week
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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