NEW YORK (Reuters) - Oil prices fell nearly 1 percent on Friday as global supply increased and investors worried demand growth could slow, pressuring U.S. crude to its longest stretch of daily declines since 1984.
Crude futures benchmarks have slid about 20 percent or more since peaking in early October.
“What a difference a month makes,” said Michael Tran, commodity strategist at RBC Capital Markets.
“Market sentiment has shifted from the most bullish tone in years with many calling for $100 only weeks ago, to the weakest investor sentiment since the 2016 price trough.”
Benchmark Brent crude LCOc1 futures fell 47 cents, or 0.7 percent, to settle at $70.18 a barrel. During the session Brent fell below $70 a barrel for the first time since April, as much as 20 percent off four-year highs reached in October.
Brent slumped about 3.6 percent for the week and more than 15 percent this quarter.
U.S. crude fell for the 10th straight day, the longest such streak since July 1984, according to Refinitiv data.
U.S. West Texas Intermediate crude futures CLc1 declined 48 cents, or 0.8 percent, to settle at $60.19 a barrel. The session low was an eight-month bottom at $59.26, down more than 22 percent from its October peak. That decline puts U.S. crude in “bear market” territory using a stock market definition.
Hedge funds cut bullish wagers on U.S. crude in the latest week to the lowest level in more than a year, data showed, while speculators slashed bullish bets on Brent crude to the lowest since July 2017. [CFTC/]
Demand worries followed forecasts for slower economic growth in 2019, largely due to a U.S.-China trade war. [IEA/M]
On Friday, Chinese data showed producer inflation fell in October for the
