Oil prices fell on Thursday as investors took profits after this week’s rally and as U.S. stock markets fell, but losses were limited by the continuing efforts of OPEC and its allies to curb supplies.
Brent crude LCOc1 futures fell 56 cents to settle at $68.91 a barrel, a 0.8 percent loss, having retreated from a session peak of $69.70, close to its highest level since early February.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 87 cents to settle at $64.30 a barrel, a 1.3 percent loss. WTI traded between $64.23 a barrel and $65.74 a barrel during the session.
Oil prices have risen in the past two weeks, boosted by a weaker U.S. dollar and tensions between Iran and Saudi Arabia that raised concern about Middle East supplies already restricted by an OPEC-led production pact.
Prices recorded their biggest one-day gain since November on Wednesday after an unexpected drop in U.S. crude inventories.
A drop in U.S. equities on Thursday also weighed on oil prices as U.S. President Donald Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China.
“Fears of a trade tit-for-tat with China is a component to oil’s weakness today insofar as it might impact accelerating demand,” said Anthony Headrick, energy market analyst and commodity futures broker at CHS Hedging LLC in Inver Grove Heights, Minnesota.
The oil derivatives market shows most activity in the past week has centered around options to buy, known as “call options,” which give the holder the possibility to purchase oil at a given price by a certain date.
Call options to buy oil at $80 a barrel by the end of next month have changed hands more often in the past week than options at any other price level.
Source: Reuters
