Oil soars but heads for third weekly loss amid concerns about ‎demand

Oil prices rose in Asian trading today, Friday, but are heading for a third consecutive weekly loss, after the markets witnessed sharp declines, amid fears of a weak US economy and slowing Chinese demand.

By 0545 GMT, Brent crude rose 60 cents, or 0.8 percent, to $ 73.10 a barrel, while US West Texas Intermediate crude increased 52 cents, or 0.8 percent, also, to $ 69.08 a barrel, after recording losses for over a year. four consecutive days. As reported by “Reuters”.

For the week, Brent crude is heading to end down 8.1 percent, while WTI is heading to record a decline of 10.0 percent.

“It was a double whammy for oil prices,” said John Rong Yep, market analyst at IG in Singapore, noting that “renewed US banking crises (raised) fears of their spread and increased talk of a recession, while the sudden contraction in business activities China’s manufacturing industries indicate a decline in optimism about the prospects for oil demand

Concerns about the banking crisis in the United States continued after BackWest Bancorp announced its intention to discuss strategic options amid a crisis plaguing it.

In China, factory activity contracted unexpectedly in April as orders fell and domestic demand fell

However, Kelvin Wong, a senior market analyst at OANDA in Singapore, said prices received some support from expectations of a possible supply cut at the next OPEC+ meeting in June.