Crude oil prices fell on Friday, held back as recession fears clouded the outlook for demand, but remained on track for a weekly gain.
Brent crude futures fell $1.33 (1.3%) to $98.27 a barrel by 1225 GMT, while US West Texas Central crude fell $1.51 (1.6%) to $92.83.
Brent is on track for a nearly 4% gain this week after a 14% drop last week on concerns that rising inflation and interest rates will hit economic growth and fuel demand.
The market had absorbed contrasting views of demand from the Organization of the Petroleum Exporting Countries and the International Energy Agency.
“We are seeing a slowdown, but it is unclear if it will be as slow as some recent outlooks have predicted,” said Ole Hansen, head of commodities strategy at Saxo Bank. “Demand fluctuates, but supply remains the main concern.”
European sanctions on Russian oil are set to tighten later this year, and the six-month coordinated energy release agreed by the United States and other developed countries is expected to run its course by the end of the year.
On Thursday, OPEC cut its forecast for global oil demand growth in 2022 by 260,000 barrels per day. Currently, demand for this year he is expected to increase by 3.1 million bpd.
Meanwhile, the IEA has raised its forecast for demand growth to 2.1 million bpd, citing a shift from gas to oil in power generation.
“In the short term, there is a great deal of uncertainty about demand.
The IEA also raised its outlook for Russian oil supply in the second half of 2022 by 500,000 bpd, but said OPEC would struggle to boost production.
“Oil markets have rebounded this week and Brent has tripled again,” said Craig Earlham, senior market analyst at Oanda in London.
“All things considered, price action highlights that the market remains tight and remains sensitive to spikes.”
http://www.eyeofriyadh.com/news/details/oil-set-for-weekly-gain-despite-price-dip-on-demand-concerns Crude oil rises week by week despite price drop on demand concerns