Oil prices fall as hopes of higher Chinese demand fade

Oil prices fell today, Friday, for a second week, as investor concerns about the impact of sharp increases in interest rates on energy consumption dashed hopes related to increased Chinese demand and production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

According to “Reuters”, Patrick Harker, President of the Federal Reserve (the US central bank) in Philadelphia, said that in order to combat inflation, the bank is trying to slow the economy and will continue to raise interest rates in the short term.

Brent crude fell $1.16, or 1.3 percent, to $91.22 a barrel by 0821 GMT. US West Texas Intermediate crude fell 74 cents, or 0.9 percent, to $83.77 a barrel.

Brent crude is on track to record a weekly increase of 0.4 percent, while WTI is expected to decline by 2 percent. Thus, the two prices fell for the second week in a row

A Bloomberg report on Thursday, citing informed sources, said that China is considering reducing the quarantine period for visitors to seven from ten days. There was no official confirmation of the order from Beijing

China, the world’s largest crude importer, has adhered to strict anti-Covid-19 rules this year, which has severely affected businesses and economic activity and reduced demand for fuel.

Oil prices gained support from an imminent European Union ban on Russian oil, as well as from the agreement earlier this month by OPEC +, which includes OPEC and allies including Russia, to cut production.