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WTI remains on its back foot, falling below $ 63 ahead of Baker Hughes’ data

  • Crude oil prices are falling for the seventh day in a row.
  • The deteriorating outlook for energy demand remains the main driver behind the decline in oil prices.
  • Investors expect Baker Hughes’ weekly US oil rig numbers.

Before the weekend, crude oil prices will continue to fall. After closing negative territory for the sixth straight day, the barrel of West Texas Intermediate continued its decline in the first half of the day on Friday, most recently down 1.4% on that day at $ 62.97. For the week, WTI is down more than 7%.

Eyes on Baker Hughes data

The deteriorating demand outlook amid renewed concerns about the rising number of coronavirus cases, particularly in Asia, weighs on oil prices.

Earlier this week, both the API and EIA reported larger-than-expected draws in US crude oil stocks, but those numbers did not help WTI initiate a meaningful rebound.

Commenting on oil’s recent moves, “the spread of the virus in China and other parts of Asia is likely to weigh on demand in the short term,” analysts at Danske Bank said. “OPEC + has started to normalize its oil production, which will reduce the upside potential for oil prices against a background of solid demand.”

Meanwhile, the CME Group’s Advanced Report showed that open interest in crude oil futures markets continued to decline on Thursday.

Crude Oil Futures: Likely to recover in the near future.

Later in the session, Baker Hughes Energy Services will publish weekly US oil rig count data.

Technical levels to look out for

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