Oil’s Worst Week in Nearly Five Months Ends on a High Note
- Futures pare some of the losses from Thursday’s plunge
- Goldman Sachs sees recent price rout as entry opportunity
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Oil ended its worst week since October on a gain, a day after inflation concerns and worries over the trajectory of near-term demand triggered the largest daily loss in several months. Wall Street banks said the sell-off was transitory.
Futures in New York ended the week 6.4% lower, with Friday’s rise doing little to reverse the previous session’s swift price plunge. A combination of factors conspired to bring a 30%-plus rally this year to a screeching halt: Treasury yields that pushed the dollar higher, signs of weaker consumption in Asia in the short-term and the unwinding of long positions by commodity trading advisors. Technical indicators had shown a market correction was overdue.