Oil heads for weekly loss as recession fears trump tight supply

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Oil slipped in volatile trade on Friday and was heading for a weekly decline as concern over a potential recession-driven demand downturn outweighed tight global supplies.

Central banks are raising interest rates to tame inflation, spurring fears that rising borrowing costs could stifle growth, while mass COVID-19 testing in Shanghai this week stoked fears of potential lockdowns that could also hit oil demand.

Brent crude fell 36 cents to $104.29 a barrel while U.S. West Texas Intermediate crude dropped 50 cents,  to $102.23.

Both benchmarks were set to register weekly declines – Brent’s fourth in succession and WTI retreating after a gain the previous week. Prices had tumbled on Tuesday, when Brent’s $10.73 drop was the contract’s third-biggest fall since it started trading in 1988.

 

 




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