Oil Falls, Posting Nearly 5 Percent Weekly Loss On Growth Concerns – By ASC

Brent crude was down $ 1.68, or 1.6%, at $ 106.65 a barrel. US West Texas Intermediate (WTI) crude was down $ 1.72, or 1.7%, to $ 102.07.

Oil eased on Friday, posting a weekly loss of nearly 5%, following weaker global growth prospects, higher interest rates and the closure of COVID-19 in China weighed on demand despite the European Union considering a Russian oil ban that would tighten supplies.

Brent crude was down $ 1.68, or 1.6%, at $ 106.65 a barrel. US West Texas Intermediate (WTI) crude was down $ 1.72, or 1.7%, to $ 102.07.

Global benchmark Brent hit $ 139 a barrel last month, the highest price since 2008, but both oil benchmarks are down nearly 5% this week on demand concerns.

The International Monetary Fund, which this week lowered its global economic growth forecast for 2022, could further downgrade if Western countries extend their sanctions against Russia over its war against Ukraine, and energy prices continue to rise, official No. The 2 agencies.

The German government will cut its growth forecast for 2022 to 2.2% from 3.6%, government sources said, while China’s demand for gasoline, diesel and aviation fuel in April is expected to drop 20% from the previous year, Bloomberg reported, by China’s largest cities , including Shanghai, are under COVID restrictions.

Federal Reserve Chairman Jerome Powell on Thursday said a half -percentage point rise in U.S. interest rates “will be on the table” at the next Fed policy meeting in May, pushing the dollar to its highest level in more than two years. A stronger U.S. dollar makes oil and other commodities more expensive for those holding other currencies.

“At this stage, concerns over China’s growth and excessive tightening by the Fed, limiting U.S. growth, seem to offset concerns that Europe will soon extend restrictions on Russian energy imports,” said Jeffrey Halley, analyst at brokerage OANDA.

Speculators ’net long bets on the U.S. dollar fell for the third week in a row, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.


On the supply side, the Russia-Kazakh Caspian Pipeline Consortium (CPC) is expected to resume full exports from April 22 after nearly 30 days of disruption, sources said.

U.S. oil rig counts rose one to 549 this week, the highest number since April 2020, according to a Baker Hughes Co. report.

However, supply shortages provided support as Libya lost 550,000 barrels per day (bpd) of production due to disruptions. Supplies could be squeezed further if the EU imposes sanctions on Russian oil.

EU sources told Reuters this week the European Commission was working to speed up the availability of alternative energy supplies, while a senior White House adviser said he was confident Europe was determined to close or further restrict Russia’s remaining oil and gas exports.

The Netherlands said it plans to stop using Russian fossil fuels by the end of the year.

Morgan Stanley raised its third -quarter Brent price forecast by $ 10 a barrel to $ 130, citing a “larger deficit” this year due to lower supply from Russia and Iran, which is likely to overcome short -term demand problems.

European refiners processed 9.04 million bpd of crude oil in March, down 4% from the previous month and 4.8% higher than the previous year, Euroilstock data showed.

U.S. oil refineries are expected to have about 1.08 million barrels per day of offline capacity for the week ending April 22, increasing existing refining capacity by 47,000 barrels per day, research company IIR Energy said.

“While we may slip, there is a point where we will get support because the fundamentals here are too tight for the situation to deteriorate far,” said Robert Yawger, executive director of energy futures at Mizuho.

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(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)

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