Crude oil prices fell by more than 2.5%, recording weekly losses – (Update)

Crude oil prices fell by more than 2.5%, at the end of trading today, Friday, February 17 (2023), amid fears of a global recession that might affect demand, to record Brent crude at $83 a barrel.

Crude prices recorded weekly losses; Strong US economic data added to concerns that the Federal Reserve will tighten monetary policy further to counter inflation, a move that could hurt fuel demand even as crude inventories grow.

The weekly report of Baker Hughes showed that the number of oil drilling rigs in the United States decreased by two, bringing the total to 607 rigs.

Crude oil prices today

At the end of trading, the futures prices for Brent benchmark crude – delivery in April 2023 – fell by 2.5%, to reach $83 a barrel.

The price of US West Texas crude futures – delivery in March 2023 – decreased by 2.7%, to $ 76.34 a barrel, according to data viewed by the specialized energy platform.

Crude oil prices ended their trading, yesterday, Thursday, February 16, declining for the third consecutive session, with indications of slowing demand in America.

During the week ending today, the prices of both crudes (Brent and West Texas) recorded losses of about 4% and 4.2%, respectively.

recession fears

The data showed that the producer price index in the US rose 0.7% in January, after declining by 0.2% in December.

Meanwhile, jobless claims unexpectedly fell to 194,000, compared to the expected 200,000, according to a Reuters poll.

“The strong US data reinforced concerns about raising interest rates and pushed up US Treasury yields, which affected crude oil and other commodity prices,” said Kazuhiko Saito, senior analyst at Fujitomi Securities Co Ltd.

US oil stocks

CMC Markets analyst Tina Teng said: The rise in US oil stocks to their highest level in 17 months indicates weak demand; This led to a drop in crude oil prices.

“Crude oil prices also fell due to risk-free trades following Wall Street’s sell-off after PPI data and US dollar strength,” Teng added.

Crude oil prices have fluctuated, during the past weeks, between fears of a recession in the United States amid increases in inflation rates to combat inflation and hopes of increasing demand in China, the world’s largest oil importer.

demand for oil

The International Energy Agency said this week that China will account for nearly half of oil demand growth this year after it eased Corona restrictions, but that production restrictions by OPEC + countries may mean a supply deficit in the second half.

Saudi Energy Minister Prince Abdulaziz bin Salman said the current OPEC+ agreement to cut oil production targets by two million barrels per day would remain until the end of the year, adding that he remained cautious about Chinese demand.