Oil prices rose during trading today, Friday, but they are trending To record a weekly loss, amid fears of a slowdown in global crude oil demand With more monetary tightening expected by central banks next week.
Brent crude futures for November delivery rose 0.5%, or around 45 cents, to $ 91.29 a barrel, but are down 1.9% so far this week.
And US crude oil futures for October delivery rose 0.38%, or 35 cents, to $ 85.45 a barrel, but are on track to post their third consecutive weekly loss.
Investors are preparing to raise the US interest rate between 75 and 100 basis points next Wednesday after this week’s data showed acceleration in core inflation and amid growing fears of a global recession.
“Oil fundamentals are still mostly bearish, with Chinese demand outlook still a big question mark and the inflation-fighting Federal Reserve appears to be preparing to weaken the US economy,” Oanda analyst Edward said. Moya in a note reported by Reuters.
Oil prices fell yesterday Thursday on fears of weak demand due to a sharp rise in US crude inventories in addition to the rising dollar.
Data from the Energy Information Administration showed that US crude oil and distillate inventories rose more than expected over the past week, indicating weak demand for fuel and limiting oil prices.
The strong dollar is also a factor negatively affecting demand for oil, as dollar-denominated commodities, including crude oil, have become more expensive for buyers holding other currencies.
The dollar index was up 0.2% today, Thursday, near its recent peak.
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