Oil prices recorded the fourth consecutive weekly loss, as demand concerns escalated

2023-05-13 06:35:00

Oil prices

Brent crude futures fell 1.5% in a week, to $74.17 a barrel

Dubai – Al Arabiya.net

Published in: May 13, 2023: 10:35 a.m. GST
Last updated: May 13, 2023: 11:25 a.m. GST

Oil prices fell in trading on Friday, recording a fourth consecutive weekly loss, as the market balanced concern about supplies and renewed economic concerns in the United States and China.

Brent crude futures fell 81 cents, or 1.1%, to $74.17 a barrel, while weekly losses amounted to 1.5%.

US crude futures fell 83 cents, or 1.2%, to $70.04, while the weekly decline was 1.8%.

And the dollar held on to its modest gains against the euro on Friday, recording the largest weekly increase since February, as uncertainty about the debt ceiling and monetary policy in the United States led investors to turn to assets considered a safe haven, according to Archyde.com.

A stronger dollar makes oil denominated in the greenback more expensive for holders of other currencies.

“The lack of confidence in the economy translates into resorting to the safer dollar and also leads to pessimism about oil demand,” said John Kilduff, partner at Again Capital in New York.

And increased fears that the United States, the world’s largest oil consumer, will enter a recession after the decision to raise the US government’s debt ceiling was postponed and concern grew about the failure of another regional bank.

Federal Reserve (US Central Bank) member Michelle Bowman said on Friday that the bank may have to raise interest rates again if inflation remains high, adding that the data issued this month did not convince her that price pressures are receding.

At the same time, Chinese consumer prices rose in April at a slower pace than in March, which was contrary to expectations, while the decline in producer prices revived doubts that the recovery of the Chinese economy after the pandemic will lead to growth in oil demand.

The market drew support from expectations of a supply shortage in the second half of the year, even despite Iraqi Oil Minister Hayan Abdul-Ghani’s statements to Archyde.com that he did not expect the OPEC + coalition to decide on a new production cut at its next meeting in Vienna on the third and fourth of March. June.

On Thursday, the Organization of the Petroleum Exporting Countries (OPEC) kept its forecast for global oil demand growth in 2023 unchanged, adding that higher demand from China would offset the impact of economic risks.