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24/05/24
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Crude Prices Set for Weekly Loss as Interest Rates, Inflation Spur Concerns About Fuel Demand
On Friday crude prices gained 1% but were on track for weekly losses after strong U.S. economic data fueled expectations that interest rates may stay high for an extended period and curb the demand for fuel.
The Brent crude contract for delivery in July was 87 cents higher at $82.22 per barrel while the more active contract for August was 84 cents higher at $81.95 per barrel.
U.S. West Texas Intermediate crude futures were 93 cents higher at $77.80 per barrel on expectations that high summer travel demand will start this weekend.
On Thursday, Brent closed at the weakest level since February 7 while U.S. WTI futures closed at their lowest level since February 23.
Brent was set to close 2.1% lower for the week. It dropped for four consecutive sessions this week, the longest losing streak since January 2. WTI was on track to close 2.8% lower for the week.
An independent energy analyst, Tim Evans, petroleum prices were still soft early on Friday, with worries over Fed interest rate policy and the increase in US crude oil inventories last week still weighing on market sentiment.
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