OIL TICKS UP, BUT ON TRACK FOR WEEKLY LOSS ON RECESSION FEARS

Oil prices edged higher on Friday but were on track for a weekly decline amid fears of sharp interest rate hikes that would slam global growth and hit fuel demand.

 

Brent crude futures were up 56 cents, or 0.6%, to $91.40 a barrel as at 0610 GMT, but were down 1.5% for the week so far.

 

U.S. West Texas Intermediate (WTI) crude futures gained 42 cents, or 0.5%, to $85.52 a barrel, but were down 1.4% on a weekly basis.

 

“Today’s morning rebound for oil prices can only be described as a short-term correction, as the Fed will raise interest rates by 75bp or 100bp next week,” said Leon Li, an analyst at CMC Markets.

 

“Although the probability of a 100 bp rate hike is relatively small, it would bring uncertainty to market sentiment. So there is still a risk that oil prices could drop lower next week.”

 

Both benchmarks are headed for a third consecutive weekly loss, hurt partly by a strong U.S. dollar, which makes oil more expensive for buyers using other currencies. The dollar index ticked down on Friday but held near last week’s high above 110

 

Source: National News Agency – Lebanon

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