Oil Prices Snap Three-day Rally

Oil prices pulled back on Friday after three sessions of gains as concerns over weakening economic growth overshadowed a surprise draw in U.S. crude inventories and the prospect of deeper output cuts by OPEC and its allies.

Benchmark Brent crude edged down 0.1 percent to $61.61 but remained on track for a weekly gain of nearly 3 percent underpinned by data showing a surprise draw in U.S. crude stocks.

Likewise, West Texas Intermediate (WTI) crude futures were down 0.1 percent at $56.16 but were on track for a gain of almost 4 percent over the week.

Growth concerns resurfaced after data released overnight showed new orders for key U.S.-made capital goods fell more than expected in September and shipments also declined.

Sales of new U.S. single-family homes fell in September, helping reinforce expectations that the Federal Reserve will cut borrowing costs next week.

Ongoing Brexit woes and fresh concerns surrounding U.S.-China trade also raised concerns about the weaker demand outlook in 2020.

Trade worries linger after U.S. Vice President Mike Pence adopted a hard line in a speech Thursday laying out President Donald Trump’s China policies and reiterating U.S. support for protesters in Hong Kong.

On the Brexit front, investors awaited the European Union’s decision on how long to delay the U.K.’s departure.

The material has been provided by InstaForex Company – www.instaforex.com