Friday 8 July 2022

Oil heads for weekly loss as recession fears trump tight supply | Reuters

Oil heads for weekly loss as recession fears trump tight supply | Reuters

Oil rose in volatile trade on Friday but was still heading for a weekly decline as concern over a potential recession-driven demand downturn outweighed tight global supplies.

Central banks are raising interest rates to tame inflation, spurring fears that rising borrowing costs could stifle growth, while mass COVID-19 testing in Shanghai this week was cause for worry over potential lockdowns that could also hit oil demand. read more

Brent crude rose $1.10, or 1.1%, to $105.75 a barrel by 1338 GMT and U.S. West Texas Intermediate crude gained $2.14, or 2.1%, to $104.87.

Both benchmarks were still set to register weekly declines, following on from the first monthly decline since November. Prices had tumbled on Tuesday, when Brent's $10.73 drop was the contract's third-biggest fall since it started trading in 1988.

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