Oil poised for a third straight weekly loss

FXStreet (Mumbai) – Oil prices are poised to end lower for the third consecutive week as the investors/traders initiated fresh shorts on fears the supply glut situation is here to stay for a long time.

Longest losing streak in four months

This is the longest losing streak in four months triggered by the OPEC’s decision earlier this month to lift the output ceiling. This was followed by congressional leaders’ decision to end US oil export ban. Meanwhile, Iran’s Rouhani came out on the wires expressing hope that the nation would reach the deal in January, which will pave the way for more Iranian oil supplies.

The Paris-based International Energy Agency (IEA) did not help matters either when it highlighted the OPEC’s renewed determination to follow its strategy of defending oil market share and crowd out non-OPEC and especially US shale investment.

At the time of writing, the WTI oil was down 1.44% or 49 cents at USD 34.47/barrel. Meanwhile, Brent oil was down 0.89% or 33 cents at USD 36.73/barrel.

Oil prices are poised to end lower for the third consecutive week as the investors/traders initiated fresh shorts on fears the supply glut situation is here to stay for a long time.

(Market News Provided by FXstreet)