By Myra P. Saefong, MarketWatch
TOKYO (MarketWatch) -- Crude-oil futures fell to a low near $76 per barrel in electronic trading on Globex Friday morning, setting the market up to post a loss for the week as traders mulled demand prospects on the heels of stock market declines in Asia.
"Crude oil is still battling bearish underlying fundamentals, despite what the weekly [U.S. Energy Information Administration] stocks report said," said Darin Newsom, a senior analyst at Telvent DTN.
Government data on Wednesday showed U.S. crude inventories increasing less than expected last week. See Wednesday's Futures Movers.
But on Friday in Asia, traders were reacting to the "difference between government numbers and market opinion," said Newsom. "Contango in futures spreads has moved past $1.30 indicating a more bearish supply and demand" picture. Contango refers to a situation where the price of a commodity for future delivery is higher than the spot price.
Crude for January delivery was down $1.79, or 2.3%, at $76.17 per barrel on Globex by late Friday morning in Tokyo, after tapping a low of $76.05.
The contract gained 2.6% to end at $77.97 on Wednesday on the New York Mercantile Exchange. Trading on the exchange was closed Thursday for the Thanksgiving holiday.
