Crude oil futures ended slightly higher last Friday in the U.S.
Crude oil for September delivery added 0.3%, or 25 cents, to $86.88 a barrel on the New York Mercantile Exchange. It traded as high as $88.32 a barrel and as low as $82.87 a barrel during the session.
However, on the week, crude declined 9.2%, which follows a decline of 4.2% the previous week and a slight decrease for July.
Oil losing so much ground so fast this week is worrying, as the fact that it broke through levels of support easily is not a positive indicator for the next week.
Iran’s representative to the Organization of the Petroleum Exporting Countries said Friday that OPEC will need to meet if crude prices fall further. However, it is too early to make a call on price direction, according to his comments published on Iran’s oil ministry website.
Oil market traders and investors took cues from International equity markets last week, believing they have become a proxy for sentiment about the health of the global economic recovery, which correlates closely with demand for oil and gas.
It seems, the oil price is reflecting the overall consensus of the global economy and the equity markets.
