Oil on track for sharpest weekly decline since March

Brent crude oil price news: Oil prices were on track for their steepest weekly decline since March despite rising in early trade on Friday, on growing worries that higher-for-longer interest rates could stoke a global economic slowdown and curb fuel demand. Both benchmarks had surged to 2023 highs last week, but Brent has dropped 11.8 per cent and WTI by about 8.8 per cent this week.

On Friday, Brent futures were up 36 cents, or 0.4 per cent, at $84.43 at 0147 GMT, while US West Texas Intermediate crude futures were up 42 cents, or 0.5 per cent, at $82.73, recovering slightly from a 2 per cent decline on Thursday. "Oil prices are stabilizing after a brutal week that saw a relentless bond market selloff trigger global growth worries," said Edward Moya, an analyst at OANDA. Bond investors' rising concerns around government spending and a ballooning budget deficit in the United States, the world's top oil consumer, are contributing to a steep sell-off that has pushed Treasury prices to 17-year lows.

"The worst week for crude since March is starting to attract buyers given the oil market will still remain tight over the short-term," Moya said. A meeting this week of a ministerial panel of OPEC+, the Organization of the Petroleum Exporting Countries and allies led by Russia, made no changes to the group's oil output policy.

US Government data this week showed a sharp decline in US gasoline demand, with economic data showing the US services sector had slowed. A key survey revealed that euro zone economy probably shrank last quarter, while a pricey dollar kept a lid on buying capacity of countries around the world. All eyes on Friday will be on the US monthly jobs report for signs of how strong the economy is. "The non-farm payroll data tonight, the US CPI, and China's economic data next week will be key to steering oil's movements. A resilient economic front can be a short-term positive sign for the demand outlook," Teng said.