WTI Crude Records Longest Losing

Oil prices fell to a six-week low on Friday amid demand concerns after Austria announced a nationwide lockdown.

But for consumers looking for some relief at the pump, the declines are not yielding any immediate lower fuel prices. The national average for a gallon of gas stood around a seven-year high of $3.41 on Friday, according to AAA.

The U.S. benchmark for oil sank more than 4% to a session low of $75.37, a price not seen since 7 October. Crude traded in the green earlier in the US session, but fell into the negative territory following news of Austria’s lockdowns.

The demand rebound has been a key driver of oil’s recovery this year, and any indication that it might ease will ignite traders’ fears.

A move below $80 could deepen the correction, perhaps pulling the price back towards the mid-$70 region.

The December futures contract expires today, with the more actively traded contract for January delivery dipping 3.8% to $75.44 per barrel. Brent crude futures, the international benchmark, traded as low as $78.15 for the first time since 1 October.

Both WTI and Brent are on track for a fourth straight week of losses, which is the longest weekly losing streak since March 2020.