Oil prices fell on Friday on the back of a weak global demand outlook and the resumption of some Libyan crude oil production.
Brent crude futures closed down 0.64% at $103.20 a barrel, while WTI futures were down 1.71% at $94.70.
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.
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 contracts down by regarding 3% in the previous session, limited global supplies continued to maintain 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 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 was down 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, putting it on track to achieve 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.
