Oil prices fall, but head towards weekly gains

Oil prices fell today, Friday, but are heading for weekly gains, as the market continues to oscillate between fears of a recession in the United States and hopes for a strong recovery in fuel demand in China, the largest importer of crude in the world.

By 0721 GMT, Brent crude futures fell 13 cents, or 0.15 percent, to $84.37 a barrel, and West Texas Intermediate crude futures fell 23 cents, or 0.29 percent, to $77.83 a barrel.

According to Reuters, the decline in prices is due to reasons, including a report released on Thursday, which revealed that the number of US jobless claims increased more than expected in the past week, which raised fears of a recession.

The increase in the consumer price index in China in January, compared to the previous month, reinforced the atmosphere of caution in the oil market

The latest US inventory data released this week also raised fears of a slowdown in the world’s largest economy, as inventories jumped to the highest level since June 2021.

However, Brent and West Texas Intermediate crude jumped by more than five percent this week, and compensated for most of last week’s losses, as fears related to a sharp rise in future US interest rates receded.

The market was boosted by Saudi Arabia’s move to increase official prices for its crude sales to Asia, which is seen as reflecting a recovery in demand in China, where crude oil flows are expected to increase in March.