Weekly oil prices drop over 6.0pc amid geopolitical tensions

HOUSTON, July 21 (Xinhua): Oil prices decreased for the week ending July 19, with the price of West Texas Intermediate (WTI) for August delivery down 7.61 per cent and Brent crude oil for September delivery down 6.37 per cent.
WTI closed the week at 55.63 US dollars a barrel on the New York Mercantile Exchange, while Brent crude finished the week at 62.47 dollars a barrel on the London ICE Futures Exchange. WTI and Brent crude have increased 22.51 per cent and 16.12 per cent, respectively, so far this year.
During the week, WTI and Brent moved in the same directions with a momentum of downtrend. The prices of crude oil rose on global exchanges Friday as geopolitics intruded on daily deals, with traders troubled by Middle East military tensions. However, compared with the losses in the previous sessions, the gains were modest.
Oil prices fell on Monday, as investors digested news that Iranian President Hassan Rouhani said the country would be ready to hold negotiations with the United States if Washington lifted sanctions against Tehran. Oil prices declined significantly on Tuesday after reports that US Secretary of State Mike Pompeo said Iran was ready to negotiate on its missiles.
Meanwhile, oil prices lost certain support as oil firms in the Gulf of Mexico began restoring some of their production that was shut down due to Hurricane Barry over the weekend. The WTI decreased 0.63 dollar and 1.96 dollars to 59.58 dollars a barrel and 57.62 dollars a barrel, respectively, on Monday and Tuesday, while Brent crude lost 0.24 dollar and 2.13 dollars to 66.48 dollars a barrel and 64.35 dollars a barrel, respectively.
On Wednesday, oil prices extended losses after data showed US crude oil inventories decreased. According to the Weekly Petroleum Status Report released by the US Energy Information Administration (EIA) on Wednesday, US crude oil inventories decreased by 3.11 million barrels in the week ending July 12 to 455.9 million barrels, which was more than the expected drop of 2.69 million barrels, implying weaker demand and bearish for crude prices.
Oil prices also lost some support amid signs of potential progress toward negotiations between Washington and Tehran. The WTI fell 0.84 dollar to settle at 56.78 dollars a barrel, while Brent crude dropped 0.69 dollar to close at 63.66 dollars a barrel.