EghtesadOnline: Oil rebounded on Friday as the dollar dipped, but prices were on track for a steep weekly decline on concerns about weakening demand in China and further interest rate hikes by the US Federal Reserve.Oil rebounded on Friday as the dollar dipped, but prices were on track for a steep weekly decline on concerns about weakening demand in China and further interest rate hikes by the US Federal Reserve.
Brent crude futures clawed back 64 cents to stand up 0.7% to $90.42 a barrel, but were not far off four-week lows of $89.53 hit in the previous session, Reuters reported.
US West Texas Intermediate crude futures rose 75 cents, or 0.9%, to $82.39 a barrel, but held near a six-week low. WTI is down more than 7% so far this week, while Brent is down nearly 6%.
The dollar index inched lower on Friday, making oil cheaper for buyers holding other currencies.
Analysts said concerns about potential lockdowns in China to curb a surge in Covid cases, which hit their highest level since April, and worries that more interest rate hikes will drive the US economy into recession cast a pall over the market.
Remarks from US Federal Reserve officials this week and stronger-than-expected retail sales data have dashed some hopes for the moderation of aggressive interest rate hikes in the United States.
The Fed is expected to raise rates by a smaller 50 basis points in December after four consecutive 75 bp hikes, according to a Reuters poll.