But oil prices have waned whenever supply worries re-emerge.
Saudi Arabia’s energy minister Khalid al-Falih, speaking at a conference in Abu Dhabi, suggested there are behind the scenes negotiations among oil producers ahead of OPEC’s May meeting, according to the Wall Street Journal.
There was a misperception out there that when the refinery runs are finally cranked back up that you’d see these crude oil inventories plummet, and that’s not the case.”
“It’s bearish for gasoline in particular, to the extent the end product value comes down and pulls down the price of oil with it.
But on Thursday Saudi Arabia’s oil minister helped calm crude, which was higher in early U.S. trading.
James Durbin/Reporter-Telegram Photo: James Durbin Buy this photo Oil price back below the $50s 1 / 1 Back to GalleryIt was a tough week for oil.
The price fell every day this week, and Friday’s close marked a 15-day streak of prices in the $50s.
Oil price back below the $50sPhoto: James Durbin Image 1 of / 1 Caption Close Image 1 of 1 Buy photo Robinson Drilling rig #4 on Wednesday, Feb. 17, 2016, in Midland County.
After gaining nearly 11 percent over the past three weeks, the price for West Texas Intermediate fell nearly 7 percent this week.
WTI contracts for June delivery closed Friday at $49.62 a barrel, down $1.09 (2.15 percent) on the day and $3.56 (6.69 percent) for the week.
Oil price dives, sending US crude below $50 for first time in two weeks – Business News
U.S. crude futures ended at $49.62 a barrel, down 2.2 percent, or $1.09.Volumes were heavy, with more than 665,000 WTI futures changing hands, surpassing the daily average of 525,000 contracts.For the week, Brent fell 7 percent, while U.S. crude lost 6.7 percent.
But oil has sagged in recent days, much as it did in March.Many in the market still expect the Organization of the Petroleum Exporting Countries (OPEC) to renew its production cuts for another six months.
U.S. drillers added rigs for a 14th consecutive week, Baker Hughes said on Friday.
production, already at its highest since August 2015, looks likely to keep rising.
On Friday, the U.S. Commodities Future Trading Commission (CFTC) showed total long positions in U.S. crude rose in the week to April 18 to their highest in more than a month at 355,077 contracts.