Oil about to post its longest losing streak in 34 years, here's why

Trump: Don’t want to lift oil prices worldwide

President Trump on the Iran sanctions and efforts to keep oil prices down.

Oil is on track for its longest losing streak in more than 34 years, with futures lower again on Friday after the commodity officially entered a bear market on Thursday.

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West Texas Intermediate crude oil futures fell below $60 a barrel on Friday for the first time since early March. Prices are currently hovering around their lowest in about nine months. If the contract finishes lower on Friday, it will mark 10 consecutive down sessions, the longest losing streak for the commodity in about 34 years, according to data from Refinitiv.

Oil peaked in October on concerns U.S. sanctions on Iran would crimp supply, however, even as these sanctions were officially implemented the oil market appears to be well supplied with other major producers more than compensating.

The U.S., Saudi Arabia and Russia are all producing at or near record levels while Washington provided exemptions on some of the biggest exporters of Iranian crude, allowing them to continue to purchase in the near term.

Meanwhile, concerns that global economic growth will wane are also supporting oil bears. Oil is an economically sensitive commodity, meaning that when the economy cools demand slips, while when the economy fires up demand for oil climbs. This is because in an expanding economy there is higher demand for goods and travel, and it takes oil to power airplanes, trucks and automobiles.

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Oil investors will get an updated look at U.S. oil production Friday afternoon when Baker Hughes releases its weekly rig count.

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