registered oil prices A weekly loss of regarding 5%, affected by expectations of weak global economic growth, raising interest rates and restrictions to combat “Covid-19” in China, which negatively affected demand, although the European Union is considering banning Russian oil imports.
Brent crude fell $1.68, or 1.6 percent, to settle at $106.65 a barrel.
And US West Texas Intermediate crude fell $1.72, or 1.7%, to settle at $102.07 a barrel.
The International Monetary Fund this week lowered its forecast for global economic growth, while US Federal Reserve Chairman Jerome Powell said on Thursday that a half-point increase in interest rates would be an option at the bank’s next meeting in May.
“At this point, concerns regarding growth in China and monetary tightening from the central bank limiting US growth appear to offset the impact of concerns that Europe will soon expand sanctions on Russian energy imports,” Oanda analyst Jeffrey Haley said.
Expectations of demand from China, the world’s largest oil importer, continued to pressure the market. Shanghai announced new measures to combat “Covid-19”, including a daily examination, starting Friday, to curb the latest outbreak of the disease in the country.
Brent price reached $139 a barrel last month, the highest level since 2008, but the two benchmarks recorded weekly losses of regarding 5% each.
Baker Hughes Energy Services said in a report on Friday that the number of oil rigs, an early indicator of future production, increased by one to 549 in the week ending April 22, its highest level since April 2020.
The current support for prices comes from a lack of supplies following production was disrupted in Libya and its decline by 550,000 barrels per day, and supplies might decrease further if the European Union imposed an embargo on Russian oil.
The Netherlands said on Friday it plans to stop using Russian fossil fuels by the end of the year.
Morgan Stanley raised its forecast for the price of Brent crude in the third quarter by $10 a barrel to $130, while attributing it to a “deficit.”
greater” this year due to lower supply from Russia and Iran, which is likely to outweigh the impact of lower demand in the short term.
