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Oil Caps Longest Run of Losses Since 2019 on Fed Tapering Signal

  • Crude hurt by dollar surge, spread of Covid-19’s delta variant
  • WTI futures fell for a seventh day, down almost 9% this week
Russian Oil Fields Ahead of 180th OPEC Meeting
Photographer: Andrey Rudakov/Bloomberg
Updated on

Oil capped the week with the longest losing streak since 2019 as the dollar strengthened after the Federal Reserve signaled it will start tapering stimulus and the virus resurgence raises doubts about demand growth.

West Texas Intermediate futures ended the session 2.2% lower, tumbling for a seventh day and extending the week’s decline to 8.9%. Other raw materials including copper and iron ore fell on Thursday following the Fed’s signal. The Bloomberg Dollar Spot Index has risen every day this week, making commodities priced in the currency less appealing. The pandemic remains a threat to energy demand, especially across Asia, with key importer China restricting mobility to combat an outbreak.