(MENAFN- Trend News Agency)
Oil prices fell on Friday amid recession fears and a stronger
U.S. dollar, though losses were capped by supply concerns after
Moscow's new mobilization campaign and an apparent deadlock in
talks on reviving the Iran nuclear deal, Trend reports with reference to Reuters .
Brent crude futures fell 41 cents, or 0.5%, to $90.05 per barrel
at 0325 GMT, while U.S. West Texas Intermediate (WTI) crude futures
were down 30 cents, or 0.4%, to $83.19.
Front-month Brent and WTI contracts were down 1.5% and 2.3%,
respectively, for the week so far.
'In the wake of accelerating rate hikes by the major central
banks, the risk of a global economic recession overshadows supply
issues in the oil markets, despite the recent escalation in the
Russia-Ukraine war,' said CMC Markets analyst Tina Teng.
'However, a sharp fall in the U.S. SPR and drawdown in
inventories may still keep oil prices supported at some point as
there is still an inevitable undersupply issues in the physical
markets, while Iran's nuclear deal is in stalemate,' she said,
referring to crude oil in the U.S. Strategic Petroleum Reserve
which dropped last week to its lowest since 1984.
Following the U.S. Federal Reserve's hefty 75 basis point
increase on Wednesday for a third time, central banks around the
world also followed suit in hiking interest rates, raising the risk
of economic slowdowns.
'Crude prices remain volatile as energy traders grapple with a
deteriorating demand outlook that is still vulnerable to
shortages,' said Edward Moya, senior market analysts at OANDA, in a
'Supply risks and tight market conditions should give oil some
support above the $80 level, but a quicker tumble to a global
recession will keep prices heavy.'
A senior U.S. State Department official said that efforts to
revive the 2015 Iran nuclear deal have stalled due to Tehran's
insistence on the closure of the U.N. nuclear watchdog's
investigations, easing expectations of a resurgence of Iranian
Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.