Brent oil decreased 0.6% in the week ending Feb. 24 over fears that further interest rate hikes in the US would dampen oil demand in the world’s largest oil consumer.
International benchmark Brent crude was trading at $82.64 per barrel at 3 p.m. (1200 GMT) on Friday, posting a 0.6% fall from the Monday session that opened at $83.15 a barrel.
The American benchmark West Texas Intermediate (WTI) registered at $75.74 per barrel at the same time on Friday, decreasing 1.2% relative to the opening price of $76.69 a barrel on Monday.
Prices began the week on a positive note over hopes of stronger demand in China, the world’s largest oil-importing country.
The aviation sector in the country has almost healed the wounds of the pandemic period, surging 34.8% year on year, and recovering by 74.5% compared to the same period in 2019.
However, further gains were limited by the US decision to release oil from the country's Strategic Petroleum Reserves (SPR). The plan includes the sale of 26 million barrels, which are set to be delivered to the market from April 1 to June 30.
Prices slipped on Tuesday and extended further losses on Wednesday over fears that further interest rate hikes in the US would dampen oil demand in the world’s largest oil consumer.
Expectations of higher interest rates also fueled the US dollar's strength, discouraging oil-importing countries from purchasing dollar-indexed crude.
Prices rose on Thursday and Friday as investors anticipated that Russia would reduce its oil exports more than previously announced.
On Feb. 10, Russian Deputy Prime Minister Alexander Novak said Russia would cut crude oil production by 500,000 barrels per day in March. But reports indicate that the country may cut supplies even further. The country is reducing its supply in response to Western sanctions against Russian oil exports.
Meanwhile, US commercial crude oil inventories increased by around 7.6 million barrels to 479 million barrels, according to data released by the Energy Information Administration (EIA) late Thursday.
Oil inventories rose for the ninth week in a row, surging to their highest level since May 2021. The increase signals a drop in crude demand, weighing down prices.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr