Crude Oil Ends Below $51 A Barrel; Sheds 4.6% For Week

(RTTNews) - U.S. crude oil ended sharply lower for a third straight session on Friday, on continued concerns of a supply glut, after data from the Energy Information Administration yesterday showed crude stockpiles in the U.S. to have surged more than expected last week to a record high.

Crude prices tumbled despite the dollar trending lower against a basket of some select currencies.

Crude oil futures dropped about 4.6 percent for the week.

The inventory buildup suggests weakening demand as both OPEC and non-OPEC producers are locked in a price war. Markets continue to remain oversupplied despite signs that U.S. and Canadian producers are cutting output and scaling back major projects after the recent collapse in oil prices.

An official EIA report showed U.S. crude oil inventories to have jumped 7.7 million barrels in the week ended February 13, while analysts expected an increase of 3.1 million barrels. U.S. crude oil inventories were at a record high of 425.6 million barrels end last week.

Gasoline stocks increased by 0.5 million barrels last week, while analysts anticipated a gain of 0.4 million barrels.

Light Sweet Crude Oil futures for March delivery, the most actively traded contract, dropped $0.82 or 1.6 percent to settle at $50.34 a barrel on the New York Mercantile Exchange Friday. The March contract expired today.

Crude prices for March delivery scaled a high of $51.85 a barrel intraday and a low of $50.24.

On Thursday, crude oil ended lower for a second straight session on Thursday, as oversupply concerns resurfaced after an official weekly oil report from the Energy Information Administration showed crude stockpiles in the U.S. to have surged more than expected last week.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 94.25 on Friday, down from its previous close of 94.40 on Thursday in North American trade. The dollar scaled a high of 94.79 intraday and a low of 94.06.

The euro trended higher against the dollar at $1.1405 on Friday, as compared to its previous close of $1.1368 on Thursday in North American trade. The euro scaled a high of $1.1426 intraday and a low of $1.1282.

In economic news, eurozone business activity accelerated for the third straight month to hit a seven-month high in February on stronger demand, raising hopes of recovery gaining strength, flash data from Markit Economics showed Friday. New order growth also prompted firms to raise their staffing levels at the fastest pace since 2011. The composite output index rose to 53.5 in February from 52.6 in January. It was also above the expected score of 53.

Germany's private sector output grew at the strongest pace in seven months in February, flash data from Markit Economics showed Friday. The composite output index came in at 54.3 in February, up from 53.5 in January.

The French private sector expanded at the fastest rate in three-and-a-half years in February, flash data from Markit Economics showed Friday. The composite output index rose to 52.2 in February from 49.3 in January, more than the 49.8 reading expected by economists. This marked a forty-two month high.

Germany's producer prices in January declined at the fastest pace since early 2010, exceeding economists' prediction, figures from Destatis showed Friday. The prouder price index dropped 2.2 percent year-on-year in January, following a 1.7 percent fall in the previous month. Economists had forecast a 2.0 percent decline for the month.

The U.K. budget surplus hit a seven-year high in January on rising personal income tax, signaling that the government is set to achieve the target before the general election in May.

Meanwhile, retail sales declined slightly more-than-expected in January, marking the first fall in four months on weak food and clothing sales.

Net borrowing excluding public sector banks totaled -GBP 8.8 billion in January, an increase of 34.9 percent from last year, the Office for National Statistics said Friday. Nonetheless, the surplus was slightly below the GBP 9 billion predicted by economists.

Another report from the ONS showed that retail sales fell for the first time in four months in January. Sales including automotive fuel were down 0.3 percent from the previous month. Economists had forecast sales to drop 0.2 percent after a 0.2 percent rise in December.