Oil climbs as dollar slips, but demand fears keep a lid on gains
Shafaq News / Oil prices turned higher on Friday as the dollar eased, but gains were capped by recession fears and fresh concerns that COVID outbreaks will dent fuel demand in China.
Brent crude futures rose 65 cents, 0.7%, to $95.32 a barrel at 0155 GMT. The contract was on track to end the week down just 0.5%.
U.S. West Texas Intermediate (WTI) crude futures climbed 66 cents, or 0.8%, to $88.83 a barrel putting the contract on course for a weekly gain of 1%.
Both contracts fell in early trade as the dollar moved higher then turned around when the dollar index slipped 0.3% to 112.67. A weaker dollar boosts oil demand as it makes the commodity cheaper for those holding other currencies.
Analysts said while demand concerns are weighing on the market, supply is still expected to be tight, putting a floor under oil prices, with Europe's embargo on Russian crude starting on Dec. 5 and U.S. crude stockpiles falling.
"We are not at levels that will encourage oil bulls to admit defeat just yet," Stephen Innes, managing partner at SPI Asset Management, said in a note.
Fears of a recession in the United States, the world's biggest oil consumer, grew on Thursday after Federal Reserve Chairman Jerome Powell said it was "very premature" to be thinking about pausing interest rate hikes.
(Reuters)
