Crude oil futures ended lower on Friday as President Trump’s withdrawal from the Paris Climate Accord increased worry among investors, according to Bloomberg MarketWatch.
On the New York Mercantile Exchange, July West Texas Intermediate crude slid 70 cents, or 1.5%, to settle at $47.66 a barrel. WTI lost 4.3% for the week, which was the largest weekly decline since the week ending May 5.
August Brent crude, the global benchmark, declined by 68 cents, or 1.3%, to end trading at $49.95 on the London ICE Futures Exchange. The Brent crude contract was down roughly 4.9% for the week.
Trump’s announcement on Thursday withdrawing the U.S. from the Paris Climate Accord raised concerns around a continuing global glut in supply.
“With around half of the cuts from OPEC so far being offset by the rise in U.S. production, this latest development threatens yet more support for the U.S. shale sector, further delaying the process of rebalancing the market,” said Enrico Chiorando, a U.K.-based analyst at energy consultancy Love Energy.
Last Thursday, a report from the Energy Information Administration revealed strong weekly drawdowns for both crude and gasoline inventories.
Back on the New York Mercantile Exchange, July natural gas settled at $2.999 per million British thermal units—ending under $3 for the first time since mid-March. For the week, natural gas dropped roughly 9.4%, including a 2.1% decline Thursday, which followed data from the EIA showing a larger-than-expected weekly climb in U.S. natural gas supplies.