Oil prices decreased over 5% during the week ending Oct. 14 due to recession worries, negative demand projections, and strong dollar.
International benchmark Brent crude traded at $93.39 per barrel at 02.33 p.m. local time (1133 GMT) for a 5.42% decrease from the opening price on Monday of $98.75 a barrel.
American benchmark West Texas Intermediate (WTI), trading at $87.84 per barrel at the same time, saw a 6.03% fall after the previous session closed at $93.48 a barrel.
Prices started the week on a negative note over weak demand signals fueled by slowing economic activity in China and global economic slowdown projections.
The International Monetary Fund (IMF) said in a report on Tuesday that sharp tightening of financial conditions amid high inflation could send the global economy into recession in 2023.
The Organization of the Petroleum Exporting Countries (OPEC), in its latest monthly oil market report, also revised down the global oil demand growth in 2022.
The group said these include the extension of China's zero-COVID-19 restrictions in some regions, economic challenges in OECD Europe, and inflationary pressures in other key economies which could taper overall demand.
The rise in the US dollar index, which pits the dollar against a basket of six global currencies, also put pressure on prices. When the dollar gains in value against other currencies, dollar-denominated oil becomes more expensive for buyers, discouraging trade.
The recent resurgence of COVID-19 cases in China has also forced authorities to restrict travel and take additional measures to contain the virus, fueling demand worries in the world's biggest crude oil importer.
Despite the decision of the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+ cut 2 million barrels of output starting November, the expectations for the US to offer additional releases from its Strategic Petroleum Reserves in response also put the prices on a downward trajectory throughout the week.
Finally, demand-side concerns are coupled with supply worries as the EU prepared a new sanctions package against Russia last week. The eighth sanctions package against Russia includes a prohibition of transporting oil to non-EU countries above a certain price. However, the decision had limited supporting effect on declining prices.
By Ebru Sengul Cevrioglu
Anadolu Agency
energy@aa.com.tr