Oil settles up but posts weekly decline on recession fears | Reuters

Oil settles up but posts weekly decline on recession fears | Reuters

Oil prices settled up by more than $3 a barrel on Friday, supported by tight supply, but they notched their second weekly decline on concern that rising interest rates could push the world economy into recession.

Brent crude settled up $3.07, or 2.8%, at $113.12 a barrel by 12:10 p.m. EDT (1610 GMT). U.S. West Texas Intermediate (WTI) crude settled up $3.35, or 3.2%, at $107.62.

The U.S. Federal Reserve "was talking very hawkish which was undermining the oil rally, but sentiment is changing a little especially on strong economic data," said John Kilduff, partner at Again Capital LLC in New York.

On Thursday, Fed Chair Jerome Powell said the central bank's focus on curbing inflation was "unconditional", adding to fears about more interest rate hikes. read more

A survey on Friday showed U.S. consumer sentiment hit a record low in June even as the outlook for inflation improved slightly. read more

Russia's invasion of Ukraine exacerbated tight supplies this year just as demand has been recovering from the COVID pandemic, and oil came close to an all-time high of $147 reached in 2008.