Oil prices set for 10% weekly loss on demand worries

Oil prices set for 10% weekly loss on demand worries

Oil prices ticked higher on Friday but both benchmarks were set for a weekly loss as worries over weak economic outlook in China, Europe and the US weighed on oil demand. Brent crude futures were at $76.56 a barrel, up 41 cent, or 0.5 per cent, at 1420 GMT (6.20pm UAE time). US West Texas Intermediate crude was up 36 cents, or 0.5 per cent, at $71.82 a barrel. The contracts, which had earlier this week hit 2022 lows, are set for weekly losses of around 10 per cent each. “The EU’s oil embargo against Russia and the G7 price cap on Russian oil that came into force at the start of this week have been just as powerless to prevent this as the easing of coronavirus restrictions in China and robust Chinese crude oil imports have,” Commerzbank analyst Carsten Fritsch said. The market structure for Brent contracts has switched to contango, meaning contracts for near-term delivery are cheaper than for delivery in six months, indicating that traders see weaker demand. News of a leak resulting in the closure of Canadian firm TC Energy’s Keystone pipeline in the US prompted a brief rally on Thursday. However, prices eased as the