Oil prices fell for the second week in a row as a sharp rise in interest rates weighed on oil demand expectations as a result of restrictions imposed by China to limit the spread of the coronavirus.
The two indices posted modest weekly declines, as Brent crude futures fell about 0.2 percent for the week, after hitting their lowest level since January at one point.
US West Texas Intermediate crude also recorded a weekly decrease of 0.1%.
The price of black gold was affected by the European Central Bank’s announcement this week of a 75-point increase in interest rates, as well as more shutdowns related to the spread of the Corona virus in China.
The weekly drop comes despite a rise in oil prices in the last session of the week on Friday, after Russian President Vladimir Putin threatened to halt oil and gas exports to Europe if a cap was placed on Russian oil prices.
Prices were also supported by OPEC+’s announcement this week of a modest production cut.
Brent crude oil rose about $3.69, or 4.1 percent, to $92.84 a barrel on Friday.
West Texas Intermediate crude futures rose $3.25 or 3.9% to $86.79 per barrel.
In the coming months, the West will have to deal with the risks of losing Russian energy supplies and rising oil prices, said Stefan Burnock of the oil market brokerage BVM.
Pressured by fears of a recession and demand, Brent crude fell sharply after rising to a record high of $147 in March, which oil prices have seen since the start of the Ukraine crisis.
A U.S. Energy Department official told Reuters the White House is not currently considering a new withdrawal from strategic oil reserves of more than 180 million barrels, which President Joe Biden announced months ago.
Source: Lebanon Debate
