Oil prices inched higher on Friday, with benchmark contracts headed for a weekly climb as recession fears eased, though an uncertain demand outlook capped gains.
Brent crude futures rose 23 cents, to $99.83 a barrel while U.S. West Texas Intermediate (WTI) crude futures climbed 3 cents to $94.37 a barrel.
Brent was on track to climb more than 3% for the week, recouping part of last week’s 14% tumble, its biggest weekly decline since April 2020 amid fears that rising inflation and interest rate hikes will hit economic growth and fuel demand.
Uncertainty capped price gains as the market absorbed contrasting demand views from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA).
The trade-off for growth may continue to limit oil prices’ upside, with key psychological resistance for Brent at the $100 a barrel level, Yeap added.
On Thursday, OPEC cut its forecast for growth in world oil demand in 2022 by 260,000 barrels per day (bpd). It now expects demand to rise by 3.1 million bpd this year.