On Friday, crude oil futures for both US & UK benchmarks plunged around 1% amid low demand and more than required supply, making the commodity shooting for its biggest downtrend, thus, leaving any further support from the dollar for price cushioning.
The US WTI (West Texas Intermediate) fell 43 cents, trading at $40.94 BPD and UK’s Brent oil plunged 44 cents, settling at $43.63 a barrel at 03:25 GMT, ready for its highest weekly drop since June.
The fall came after volume of imported crude oil in China, largest oil importer globally, is prepared to mitigate its demand in September after shooting for a continuous five months as its oil producers slowly absorbing the increased stockpiles.
Meanwhile, in the United States of America, diesel refiners are not likely to start more output production as the inventories are already bloated. Gasoline output is also at a meagre stage since the past two months and inventories are at “panic”.
In the meantime, middle distillates stockpiles in Singapore, Asia’s oil hub, have surged to record nine-year high.