Oil on track for third weekly fall

HOUSTON:

Oil prices rose on Friday but were set for a third straight week of losses after sharp declines earlier in the week on fears about interest rate hikes, US banking sector problems and slowing Chinese demand.

Brent crude rose $2.88, or 4%, to $75.37 a barrel by 1703 GMT. US West Texas Intermediate was up $2.85, or 4.2%, at $71.42 after four days of declines that sent the contract to lows last seen in late 2021.

The Brent benchmark was on track to finish the week with a decline of about 5.2%, while WTI was set for a 6.6% loss, despite heading for their biggest daily percentage rises in a month.

“Crude is trying to reverse the recent washout in prices triggered by higher interest rates and recession fears mostly in the banking sector,” said Dennis Kissler, Senior Vice President of Trading at BOK Financial.

Technically, crude has been through an exaggerated liquidation sell-off, Kissler said.

Published in The Express Tribune, May 6^th, 2023.

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