Oil prices extended loss for the third week as demand outlook worsened and concerns over tightening supply eased.
International benchmark Brent crude traded at $86.71 per barrel at 2.29 p.m. local time (1129 GMT) on Friday, a 1.17% decrease from the opening price on Monday of $87.74 a barrel.
The American benchmark West Texas Intermediate (WTI), trading at $79.67 per barrel at the same time, saw a 0.78% fall compared to Monday's opening of $80.30 a barrel.
Demand concerns increased through the week after China recorded its first COVID-19 death since May 26, despite the fact that the number of cases is negligible in comparison to the population.
New cases are sure to lead to strict measures in line with the country's zero-COVID policy, curtailing economic growth leading to lower crude demand.
News that the price cap on Russian oil by the G7 countries would be above the expectations alleviated the concerns of contracting supply and pushed oil prices lower.
Although no official decision has been taken yet, the G7 countries are discussing setting a price cap of $65 to $70 per barrel for oil transported by sea from Russia.
US Federal Reserve signaled more interest rate hikes this week, putting an end to hopes of an economic recovery.
Fears were boosted after the president of the Federal Reserve Bank of St. Louis, James Bullard, said last week that the Federal Reserve may have to raise its benchmark interest rate much higher than it has previously projected to get inflation under control.
Possible supply additions from OPEC+ countries also added to concerns of tight supply this week.
Prices slid on reports that OPEC+ oil producers may consider increasing output by up to 500,000 barrels per day at their upcoming meeting on Dec. 4.
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr