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