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New York, September 16 (BNA): Oil prices rose by about one dollar a barrel with the weakness of the US dollar on Friday, but crude oil prices remained on track for a weekly decline amid fears of large interest rate increases expected to rein in the global economy. Growth and demand for fuel.
Brent crude futures rose $1.14, or 1.3%, to $91.98 a barrel by 11:43 AM ET (1543 GMT), Reuters reports.
US West Texas Intermediate crude futures rose 83 cents, or 1%, to $85.93.
Both benchmarks are down about 1% for the week, affected in part by a strong US dollar, which makes oil more expensive for buyers using other currencies. The dollar index last fell 0.1% to 109.68, but was on track for its fourth weekly gain in the past five weeks.
In the third quarter so far, both Brent and West Texas are down about 20% in the worst quarterly percentage declines since the start of the COVID-19 pandemic in 2020.
Investors are preparing for a significant increase in US interest rates, which could lead to a recession and reduce fuel demand. The Fed is widely expected to raise its benchmark overnight interest rate by 75 basis points at its September 20-21 policy meeting.
“The growing possibility of a global recession, as underlined by the recent renewed deflation in equities, could continue to provide a limit to the potential for bullish (oil) prices in the next month and possibly beyond,” Jim Ritterbusch of Ritterbusch and Associates said in a note.
The market was also shaken by the International Energy Agency’s forecast of almost zero growth in oil demand in the fourth quarter due to weak demand forecasts in China.
Stephen, an analyst at PVM, said: “Both the International Monetary Fund and the World Bank have warned that the global economy may slip into recession next year. This portends bad news for the demand side of the oil currency and comes a day after the International Energy Agency (IEA) forecast oil demand. “. Brink.
“Recession fears combined with rising US interest rate expectations made a strong bearish cocktail.”
Other analysts said sentiment had suffered from the US Energy Department’s statement that it was unlikely to seek to refill the Strategic Petroleum Reserve until after fiscal year 2023.
On the supply side, the market found some support from waning expectations for a return of Iranian crude as Western officials played down the prospects of reviving the nuclear deal with Tehran.
Oil prices in the fourth quarter could also be supported by potential production cuts by OPEC+ members, which will be under discussion at the group’s meeting in October, while Europe faces an energy crisis driven by uncertainty over oil and gas supplies from Russia.
Germany on Friday took control of the PCK Schwedt oil refinery, mostly owned by Russia’s Rosneft (ROSN.MM), trying to remove Russian oil in its power system.
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