Oil prices fell, on Friday, once morest the backdrop of weak global demand expectations and the resumption of some Libyan crude oil production.
West Texas crude closed lower for the third week in a row following falling during the past two sessions, while Brent crude gained regarding 2% on the weekly level.
On Friday, Brent crude futures closed down 0.64% at $103.20 a barrel, while West Texas crude futures fell 1.71% to $94.70.
Friday’s data showed that the global economy appears increasingly likely to be headed for a serious slowdown, just as central banks aggressively reversed the ultra-loose monetary policy adopted during the pandemic to support growth.
While signs of weak US demand affected oil prices and pushed oil futures down by regarding 3% in the previous session, limited global supplies continued to sustain the market’s recovery.
Supply concerns eased slightly following Libya resumed production at several oil fields earlier this week.
An executive of Iraq’s Basra Oil Company also said that the country has the ability to increase its oil production by 200,000 barrels per day this year if asked to do so.
WTI has taken a hit over the past two sessions following data showed that US gasoline demand fell nearly 8% from a year earlier in the middle of the peak summer driving season, weighed down by record prices at the pump.
On the other hand, signs of strong demand in Asia boosted the Brent index, which put it on its way to achieving its first weekly gain in six weeks.
RBC analysts said India’s demand for gasoline and distillate fuel rose to record levels in June, despite higher prices, with total consumption of refined products reaching 18% more than last year and Indian refineries operating near an all-time high.
Elvira Nabiullina, the governor of the Russian Central Bank, said Friday that Russia will redirect its shipments of crude and oil products to countries willing to “cooperate” with Moscow, adding that setting a ceiling for Russian crude prices will also affect global oil prices.
West Texas Intermediate crude was on its way to closing lower for the third week in a row, following falling during the past two sessions, following data showing that demand for gasoline in the United States fell by nearly eight percent compared to the previous year at the height of the summer travel season in which gasoline consumption increases, affected by the impact Its prices are high at record stations.
On the other hand, signs of strong demand in Asia boosted Brent crude, which put it on its way to achieving its first weekly gain in six weeks.
Friday’s data revealed that the global economy is increasingly heading towards a dangerous slowdown, with central banks raising interest rates at high rates compared to a very loose monetary policy during the pandemic to support growth.
While signs of weak US demand weighed on oil prices and pushed benchmark contracts down regarding 3 percent in the previous session, limited global supplies continued to sustain the market’s recovery.
But supply concerns eased slightly following Libya resumed production at several oil fields this week.
