Weekly Crude Losses Capped By Sentiment That "There's No Faith In The Future"

Headline-obsessed crude traders on Friday were responsible for Brent and West Texas Intermediate incurring substantial weekly losses, of 3.7 and 3.6 percent respectively, due to fears over the U.S. trade impasse with China, Saudi Arabia recovering from the drone attacks on its production facilities far quicker than expected, and the prospect of global demand for oil waning - despite plenty of indications to the contrary.

Crude futures were also impacted after Hassan Rouhani, president of Iran, said the U.S. offered to remove all sanctions on his country in exchange for talks; however, Washington refuted the claim.

Another negative factor for traders was rumours from unnamed sources claiming that the White House is considering the possibility of de-listing Chinese companies from U.S. exchanges, which would be a radical escalation of trade tensions between the two countries.

As specious as many of these reports may seem to those more interested in fundamentals, Brent on Friday fell 83 cents, or 1.3 percent, to settle at $61.91 per barrel, while WTI fell 50 cents, or 0.9 percent, to settle at $55.91 per barrel.

Phil Flynn, senior market analyst with Price Futures Group Inc., remarked, "We've really been following headline to headline."

Amrita Sen, chief oil analyst at Energy Aspects Ltd., lamented, "Between fears of peak oil demand, unlimited shale growth, a looming global recession and the possibility that millions of barrels of OPEC barrels (sanctioned or otherwise) could return to the market fairly quickly, there is no faith in the future."