HOUSTON, June 29 (Xinhua) -- Oil prices ended mixed for the week ending June 28, with the price of West Texas Intermediate (WTI) for August delivery up 1.81 percent and Brent crude oil for September delivery down 0.71 percent for the week.
WTI closed the week at 58.47 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude finished the week at 64.74 dollars a barrel on the London ICE Futures Exchange. WTI and Brent have increased 28.76 percent and 20.33 percent, respectively, so far this year.
During the week, WTI and Brent moved in different directions on Monday and Tuesday. For the rest of the days, the two benchmarks moved in the same direction. The mixed ending of oil prices showed that the U.S. crude oil inventories and production as well as some geopolitical issues are the major concerns of readers.
Oil prices posted mixed results on Monday, after Washington decided to slap fresh sanctions on Iran amid escalating tensions with Tehran, fueling anxieties over global crude supply and softening demand. WTI gained 0.47 dollar to settle at 57.9 dollars a barrel, while Brent crude dropped 0.34 dollars to close at 64.86 dollars a barrel.
On Tuesday, oil prices ended mixed again as investors kept a close eye on the heated spats between the United States and Iran. WTI edged down 0.07 dollars to settle at 57.83 dollars a barrel and Brent crude was up 0.19 dollars to close at 65.05 dollars a barrel.
On Wednesday, oil prices rallied sharply as the market was boosted by a remarkable decline in U.S. crude supply last week, further shoring up prices amid the ongoing U.S.-Iran tensions. Both WTI and Brent gained more than one dollar, with WTI increasing 1.56 dollar to settle at 59.38 dollars a barrel and Brent crude up 1.44 dollars to close at 66.49 dollars a barrel.
On the day, the U.S. Energy Information Administration reported 12.8 million barrels decrease of crude oil inventories during the week ending June 21.
Oil prices rose slightly on Thursday, as investors looked to an output cut deal to be extended between the Organization of Petroleum Exporting Countries (OPEC) and its allies during an upcoming meeting next week. WTI gained 0.05 dollar to settle at 59.43 dollars a barrel while Brent crude was up 0.06 dollar to close at 66.55 dollars a barrel.
On Friday, oil prices lost ground as the market was dampened by a surge in U.S. crude oil output in April. WTI lost 0.96 dollar to settle at 58.47 dollars a barrel while Brent crude decreased 0.93 dollar to close at 64.74 dollars a barrel.
Oil prices have kept gaining momentum since the start of the year due to some geopolitical concerns and OPEC's decision of production cut. The momentum has slowed down recently, mainly because of the concerns over downturn in demand for crude oil.
The slowing global economy continues to be a major headwind for crude oil.
Moreover, a rising U.S. dollar in the past months has dragged down the greenback-denominated crude futures, as the U.S. Dollar Index has been keeping uptrend since mid-2018 but began to show weakness in the past weeks. U.S. Dollar Index closed the week at 96.13.
The U.S. Dollar Index is a measure of the value of the U.S. dollar relative to a basket of foreign currencies. Oil is mostly traded in dollar all over the world and a stronger dollar pressures the oil demand.
In the near future, analysts believe concerns over trade issues worldwide and U.S.-Iran relations will remain as important factors for oil prices. Further, a sense of caution also prevails ahead of the key meeting of OPEC and its allies due next week in Vienna, as it remains to be seen if the OPEC and other major oil producers agree on extending the oil output cuts to help keep the oil markets balanced.
