Oil rises but set for weekly drop as fears of weaker demand limit gains

  • Date: 13-May-2022
  • Source: National News…
  • Sector: Oil & Gas
  • Country: Gulf
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Oil rises but set for weekly drop as fears of weaker demand limit gains

NNA - Oil prices rose on Friday but were headed for their first weekly loss in three weeks as worries about inflation and China's COVID lockdowns slowing global growth offset concerns about dwindling supplies from Russia.

Brent crude futures were up 85 cents, or 0.8%, at $108.30 a barrel at 0900 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed 64 cents, or 0.6%, to $106.77 a barrel.

Both benchmark contracts were, however, on track to post declines for the week, with Brent set to drop nearly 4% and WTI almost 3%.

The market is continuing to be pushed and pulled by the prospect of a European Union ban on Russian oil tightening supply and concerns about faltering global demand.

SPI Asset Management managing partner Stephen Innes said in a note that oil traders were looking "for a glimmer of light at the end of China's gloomy lockdown tunnel".

"Still, we continuously end up at square one with lower case counts weighted against the authorities doubling down on their zero COVID policy," he added.

Inflation and rate rises have driven the U.S. dollar to 20-year highs, capping oil price gains as a stronger dollar makes oil more expensive when purchased in other currencies.

Analysts, however, continue

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