Oil posted its second straight weekly decline as signs of additional crude supplies and a deteriorating outlook for global demand loomed large in a series of thinly traded sessions.
The narrative of tight supplies that has fueled crude oil’s recovery since June has faded amid prospects that the US will ease sanctions on Iran and Venezuela. Meanwhile, faltering growth in China and abysmal economic data in Europe have clouded the outlook for demand. In the physical market, Marathon Petroleum Corp. third-largest US oil refinery closes after fire.
Crude oil has had a volatile week, with prices often struggling for direction amid sparse summer trading. Oil open interest is nearing January lows, while the U.S. Oil Fund ETF reported its biggest daily outflow since 2020 on Wednesday.
West Texas Intermediate futures settled below $80 a barrel, solidifying a weekly drop of 1.7%.
Prices pared some of this week’s slide on Friday as Federal Reserve Chairman Jerome Powell’s speech on the path of interest rates largely matched traders’ expectations. In addition to Powell’s remarks, China unveiled further easing of its mortgage policies to stem a slide in its struggling housing market.
Crude is trading roughly where it started the year, despite efforts by OPEC+ hubs Saudi Arabia and Russia to boost prices by curbing supply. Lingering expectations that the Fed has not completely ended its monetary tightening campaign have also added to the headwinds.
Prices:
- WTI for October delivery rose 78 cents to settle at $79.83 a barrel in New York.
- Brent for October settlement advanced $1.12 to settle at $84.48 a barrel.
