Oil heads for its second weekly drop on demand concerns

Crude oil posted its initial gains this Friday and was headed for a second weekly drop, pressured by concerns about weakening demand in China and further rises in prices. interest rates by the Federal Reserve.

China, which sources said is trying to curb crude imports from some exporters, has seen cases of Covid-19while hopes that aggressive US rate hikes will ease have been dampened by comments from some Fed officials this week.

“As it stands, the drivers for bullish prices are few,” said Stephen Brennock of oil brokerage PVM.

However, with the European Union embargo on Russian crude less than three weeks away, oil prices could still end the year with a bang.”

At 09:13 GMT, crude Brent was down 7 cents, or 0.1%, at $89.71 a barrel, while the West Texas Intermediate in the United States (WTI) was up 9 cents, or 0.1%, at $81.73.

Both benchmarks are headed for a second weekly loss. Brent is heading for a decline of more than 6%, while WTI has subtracted 8 percent.

Concerns about the recession have dominated this week, even as the European Union’s December 5 ban on Russian crude is imminent to take effect and at a time when the Organization of the Petroleum Exporting Countries and its allies , collectively known as OPEC+They are adjusting the offer.

“On the demand side, there is concern about the economic slowdown,” said Naeem Aslam of Avatrade. “The path of least resistance appears skewed to the downside.”