Oil prices fell around 5% in Friday’s trading session to their lowest level in 8 months, with the dollar hitting its highest level in over two decades due to fears that high interest rates they will push the major economies into recession, reducing the demand for oil.
Brent crude futures fell $ 4.31, or 4.8 percent, to stand at $ 86.15 a barrel. down about 6% during the week.
US West Texas Intermediate crude was down $ 4.75, or 5.7%, to come in at $ 78.74, down about 7% over the week.
This is the fourth consecutive weekly decline for both benchmarks and the first time since December.
US gasoline and diesel futures also fell more than 5%.
The US Federal Reserve raised interest rates by 75 basis points on Wednesday. Central banks around the world have followed suit by raising rates, increasing the risks of an economic slowdown.
And the dollar is heading towards closing at its highest level against a basket of other currencies since May 2002. The dollar’s rise reduces demand for oil as it makes fuel more expensive for buyers using other currencies.
A survey showed that the slowdown in business activity in the euro zone has worsened this month and is likely to enter a recession as consumers resort to spending restraint amid the rising cost of living crisis.
On Friday, the major Wall Street indices fell more than 2% as investors feared the Federal Reserve’s tough measures to curb inflation would lead to a recession and weaken corporate profits.
On the supply side, efforts to revive the 2015 Iran nuclear deal stalled as Tehran insisted on closing the UN International Atomic Energy Agency investigation, a senior State Department official said. , dampening expectations of a return to Iranian crude oil exports.
–
