Home News Oil headed for weekly loss as recession fears cloud demand outlook
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Oil headed for weekly loss as recession fears cloud demand outlook

by jcp
Editorial & Advertiser disclosure
gawdo

By Shadia Nasralla

LONDON (Reuters) -Oil prices slipped on Friday after two days of gains and are heading for weekly losses as a strong dollar and worries about a global economic slowdown weigh.

Brent crude futures were down 97 cents, or 1%, at $95.62 a barrel by 0826 GMT. U.S. West Texas Intermediate crude was at $89.59 a barrel, down 91 cents or 1%.

Both benchmark contracts were headed for weekly losses of close to 3%.

A strong dollar has made oil more expensive for holders of other currencies, while Asian and European equities dropped. [MKTS/GLOB]

In a sign of easing oil supply tightness, the price gap between prompt and second-month Brent futures narrowed by about $5 a barrel from the end of July.

“Global recession and demand destruction are front and centre of current concerns given weak data out of the U.S., euro zone and China. Signs of slowing economic growth are pervasive and could dent oil demand,” PVM analysts said.

Giving a floor to prices, U.S. crude inventories fell sharply as the nation exported a record 5 million barrels of oil a day in the most recent week, with oil companies finding demand from European nations looking to replace crude from Russia.

Haitham Al Ghais, the new secretary general of the Organization of the Petroleum Exporting Countries, told Reuters he was optimistic about oil demand into 2023.

OPEC is keen to ensure Russia remains part of the OPEC+ group, Al Ghais said ahead of a Sept. 5 meeting.

Supplies could tighten again when European buyers start seeking alternative supplies to replace Russian oil ahead of European Union sanctions which take effect from Dec. 5.

“We calculate the EU will need to replace 1.2 million barrels per day of seaborne Russian crude imports with crude from other regions,” consultancy FGE said in a note.

(Additional reporting by Florence Tan in Singapore and Yuka Obayashi in Tokyo; Editing by Jan Harvey)

www.gawdo.com

You may also like