Daily Times

Oil experienced its worst weekly loss since early April as evidence of a worldwide economic downturn reducing demand increased. Prices have not been this low in almost six months. West Texas Intermediate ended the week at $89 per barrel, down over 10pc. Reduced US gasoline consumption has raised concerns about demand, and insufficient liquidity has increased volatility. Additionally, Libyan supplies increased, which helped to reduce important oil futures time-spreads and lessen market tightness. The oil market as a whole has experienced a slump. This week, gasoline futures are down 18pc. Physical oil differentials have decreased and Brent’s immediate spread, a supply indicator that measures the difference between its two nearest futures, has decreased to $1.73 per barrel in backwardation from over $6 a week earlier.