WTI oil price ends week under $79 as contract dips 4 percent

1 October 2011 1 October 2011

SylviaHunt30

WTI oil prices end the week and close off Q3 of 2011 back under $79 a barrel, dipping over 4 percent lower as signs of slowing growth in China, the US and Germany heightened concern that crude oil demand will weaken.

WTI Oil Futures – Closing Price

US Light crude oil futures for November 2011 delivery ended the week’s trading session at $78.76 a barrel on the NYMEX, closing $1.09 lower than last week’s Friday close of $79.85 a barrel. The contract fell $3.53 yesterday, or 4.4 percent lower.

Bear Market

Driving the bearishness in the market was several data releases showing a second month of contraction in China’s manufacturing sector, together with higher inflation in Europe.

The final reading of HSBC’s China PMI index for September, a gauge of manufacturing activity in the world’s second largest energy consumer, came in at 49.9, signalling the third straight month of contraction in China’s manufacturing sector.

“Following the mixed economic data and weaker global stock markets, crude oil prices reversed and traded lower on Friday, in a correction lower. Volatility is going to remain on the commodities board as the situation in the eurozone is still uncertain.” said Sucden brokers analyst Myrto Sokou.

Analysts at Cameron Hanover refer to the current market madness as both confusing and unpleasant.

Meanwhile, US economic data was broadly in line with expectations, but could not prevent the bearish tone that had already set into the markets.

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