(MENAFN- Trend News Agency) Oil prices were little changed on Friday, with major benchmarks
headed for their second straight week of losses, as the market
awaited further signs of fuel demand recovery in China to offset
looming slumps in other major economies, trend reports with reference to reuters .
Brent crude futures dipped 16 cents, or 0.2%, to $82.01 a barrel
by 0445 GMT, while U.S. West Texas Intermediate (WTI) crude futures
slid 17 cents, or 0.2%, to $75.71.
So far this week, Brent has dropped more than 5%, extending a 1%
loss from the previous week. WTI has also fallen by nearly 5%,
after sliding 2% in the prior week.
Mixed signals on fuel demand recovery in China, the world's top
oil importer, have kept a lid prices.
ANZ analysts pointed to a sharp jump in traffic in China's 15
largest cities following the Lunar New Year holiday, but also noted
that Chinese traders had been 'relatively absent'.
The prospect of an economic rebound in China after COVID-19
curbs eased has buoyed the oil market so far this year, along with
a weaker dollar that makes the commodity cheaper for those holding
other currencies.
The dollar has fallen because aggressive interest rate hikes by
the U.S. Federal Reserve are no longer expected. Central banks for
other major economies, though, are continuing with bigger rate
increases even as inflation has eased.
While supported by a weaker greenback, oil's gains have been
limited by the prospect of slow growth in the United States, the
world's biggest oil consumer, and recessions in places including
Britain, Europe, Japan and Canada.
'The crude demand outlook needs a clear sign that China's
reopening will be smooth, and that the U.S. economic growth
momentum does not deteriorate quickly,' OANDA analyst Edward Moya
said in a note.
The U.S. central bank scaled back to a milder rate increase
after a year of larger hikes, but policymakers also projected that
'ongoing increases' in borrowing costs would be needed.
Upcoming interest rate hikes in 2023 are likely to weigh on the
U.S. and European economies, boosting fears of an economic slowdown
highly likely to dent global crude oil demand, said Priyanka
Sachdeva, market analyst at Phillip Nova.
Investors are also eyeing developments on the Feb. 5 European
Union ban on Russian refined products as the EU countries will seek
a deal on Friday to set price caps for Russian oil products.