Brent and WTI oil prices fall more than 3%

oil prices They plummeted more than 3% this Fridayas fears of a global recession and weak demand for oil, especially in China, offset support for a large cut in OPEC+’s supply target.

crude oil futures Brent they dropped 2.94 dollars, 3.11%, at 91.63 dollars a barrelwhile US West Texas Intermediate crude futures (WTI) fell 3.5 dollars, 3.93%at $85.61.

Brent and WTI contracts swung back and forth for much of Friday, but for the week lost 6.4% and 7.5%, respectively.

US core inflation posted its biggest annual rise in 40 years, reinforcing views that interest rates will stay higher for longer with the risk of a global recession.

The next decision on interest rates in the United States is scheduled for November 1 and 2.

US consumer confidence continued to improve steadily in October, but household inflation expectations deteriorated somewhat, according to a survey.

Improved consumer confidence “is seen as a negative because it means the Fed needs to break consumer sentiment and further slow down the economy and that has caused the dollar to rise and downward pressure on the money market.” oil,” said Phil Flynn, an analyst at Price Futures Group in Chicago.

The US dollar index rose 0.7 percent. A stronger dollar reduces demand for oil by making fuel more expensive for buyers using other currencies.

As for U.S. supply, energy companies this week added eight oil rigs to bring the total to 610, its highest since March 2020, energy services firm Baker Hughes Co said.