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Oil set for biggest weekly loss in more than a month
Oil futures fell on Friday, heading for a weekly loss of more than 6%, pressured by demand concerns as China’s economy slows and supply risks from conflict in the Middle East recede.
Brent crude futures fell 47 cents, or 0.6%, to $73.93 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 45 cents, or 0.6%, to $70.22 a barrel.
Brent is set to fall about 7% this week, while WTI is set to lose 8%, their biggest weekly decline since Sept. 2, after the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency cut their forecasts for global oil demand in 2024 and 2025.
China’s economy, the world’s biggest oil importer, grew at its slowest pace since early 2023 in the third quarter, but data on consumption and industrial output beat expectations in September
China’s refinery throughput also fell for a sixth straight month as weak fuel consumption and lower refining margins weighed on processing operations.
China’s central bank has rolled out two financing plans that will initially inject 800 billion yuan ($112.38 billion) into the stock market through newly launched monetary policy tools.
Crude oil prices were supported after data from the U.S. Energy Information Administration showed U.S. crude, gasoline and distillate inventories fell last week.
U.S. retail sales rose slightly more than expected in September, and investors still expect a 92% chance the Federal Reserve will cut interest rates in November.
But markets remain concerned about possible increases in oil prices amid rising tensions in the Middle East, as the Lebanese Hezbollah group announced on Friday "a transition to a new and escalating phase in the confrontation with the Israeli enemy that will be discussed in the coming days" after the killing of Yahya Sinwar.
