As U.S. and Chinese economic worries resurfaced, oil prices fell for a fourth week on Friday. By 0635 GMT, Brent crude futures fell 48 cents, or 0.64%, to $74.50. WTI futures fell 39 cents, or 0.55%, to $70.48.
Both benchmarks are expected to lose 1.1% this week, the longest weekly decline since November 2021.
The U.S. may face a recession due to stalling debt ceiling talks and renewed concerns over another regional bank. In addition, a drop in Chinese business loans and worse economic statistics earlier in the week raised worries about its rebound from COVID-19 restrictions boosting oil demand growth.
A market analyst at CMC Markets in Auckland, Tina Teng, said cooler inflation statistics from both countries indicated sluggish consumer demand.
“Oil is a growth-sensitive commodity, which was impacted by these bearish factors,” she wrote in an email.
After dipping for two sessions, the price climbed on Friday on demand expectations after the U.S. energy secretary said the SPR may acquire oil in June.
The U.S. government will buy oil when prices stay below $67 to $72.
However, efforts to raise the $31.4 trillion U.S. federal debt limit may fail to prevent a government debt default, which could disrupt markets.
PacWest Bancorp (PACW.O) shares fell 23% on Thursday after it reported lower deposits and posted extra collateral to the Federal Reserve to boost liquidity.
China’s April consumer pricing data climbed less than expected, and factory gate deflation deepened, suggesting additional stimulus is needed.
The oil market dismissed OPEC’s 2023 global oil demand projection, which predicted rising demand in China, the world’s largest oil importer.
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