Oil prices fell in early Asian trading on Friday, heading for weekly losses, as strong US economic data increased concern about the Federal Reserve continuing its policy of monetary tightening to curb inflation, which could affect fuel demand even with the growth of crude stocks. .
price move
By 0405 GMT, Brent crude futures fell 68 cents, or 0.8 percent, to $84.46 a barrel, while West Texas Intermediate crude futures fell 66 cents, or 0.84 percent, to $77.83. The two raw materials are heading for a weekly decline of about 2 percent, according to Reuters data.
Regarding the reasons for the losses in the oil markets, Kazuhiko Saito, chief analyst at Fujitomi Securities, said, “The strong US data reinforced concerns about raising interest rates and led to an increase in US Treasury yields, which put pressure on oil and other commodity prices.”
He added that the increase in crude stocks in the United States exacerbated the pressure.
On Wednesday, the Energy Information Administration reported that US crude oil inventories rose last week to the highest level since June 2021, after a larger-than-expected increase.
“However, the loss was limited as investors expect a recovery in fuel demand in China,” Saito said.
The International Energy Agency said this week that China will account for nearly half of global oil demand growth this year after easing restrictions related to Covid-19, but restrictions imposed by OPEC + countries, the group that includes the Organization of the Petroleum Exporting Countries (OPEC) and allies, on production. It could mean a supply deficit in the second half of the year.
Saudi Energy Minister Prince Abdulaziz bin Salman said that the current OPEC+ agreement to cut oil production by two million barrels per day will remain until the end of the year, adding that he remains cautious about Chinese demand.
