LONDON – Global oil prices dropped over the week, losing sight of the key $50 dollar level, as worries about a supply glut and weak economic growth took the commodity to two-month lows.
Oil enjoyed a modest recovery on Friday as bargain hunters swooped in after prices tanked the previous day in response to US commercial inventories falling by less than expected, indicating softer demand in the world’s top oil-consuming economy.
A surprisingly strong jobs report from the US strongly lifted stock markets but gave oil only a modest boost.
The US benchmark West Texas Intermediate and Brent both gained around one percent on the day, trading at $45.59 and $46.85, respectively, in the late European afternoon on Friday.
This, however, barely made a dent in the week’s decline, which took oil around six percent lower than its level of over $50 a week ago.
“The lingering oversupply concerns have repeatedly capped most upside gains,” said Lukman Otunga, an analyst with FXTM, adding that oil may fall even further.