Oil prices fell on Friday, on track to record a third consecutive weekly loss, as the market balanced concerns about supplies with renewed economic concerns in the United States and China.
Brent crude futures fell 59 cents, or 0.8%, to $74.39 a barrel by 1707 GMT. US crude futures fell 55 cents, or 0.8%, to $70.32.
The two benchmarks are on their way to incurring a weekly loss of about 1 percent.
The dollar held on to its modest gains against the euro on Friday, and is on track to record its biggest weekly increase since February, as uncertainty about the debt ceiling and monetary policy in the United States led investors to turn to safe-haven assets.
A stronger dollar makes oil denominated in the greenback more expensive for holders of other currencies.
“The lack of confidence in the economy translates into resorting to the safer dollar and also leads to pessimism about oil demand,” said John Kilduff, partner at Again Capital in New York.--
And increased fears that the United States, the world’s largest oil consumer, will enter a recession after the decision to raise the US government’s debt ceiling was postponed and concern grew about the failure of another regional bank.
Fed member Michele Bowman said today, Friday, that the bank may have to raise interest rates again if inflation remains high, and added that data issued this month did not convince her that price pressures were easing.
At the same time, Chinese consumer prices rose in April at a slower pace than in March, which was contrary to expectations, while the decline in producer prices revived doubts that the recovery of the Chinese economy after the pandemic will lead to growth in oil demand.
The market drew support from expectations of a supply shortage in the second half of the year, even despite Iraqi Oil Minister Hayan Abdul-Ghani’s statements to Reuters, today, Friday, that he does not expect the OPEC + alliance to decide on a new production cut at its next meeting in Vienna on the third and fourth of June. June.
On Thursday, the Organization of the Petroleum Exporting Countries (OPEC) kept its forecast for global oil demand growth in 2023 unchanged, adding that higher demand from China would offset the impact of economic risks.