Futures on US West Texas Intermediate Crude Oil looked set to register their most notable weekly decline since March on concerns that interest rates, remaining elevated for longer, could hinder global growth and also weigh on fuel demand.
Concerns over higher-for-longer US interest rates and a widening US budget deficit drove US Treasury prices down to 17-year lows.
“Oil prices are stabilizing after a brutal week that saw a relentless bond market selloff trigger global growth worries,” Edward Moya, analyst at OANDA, was quoted as saying by Reuters.
“The worst week for crude since March is starting to attract buyers given the oil market will still remain tight over the short-term,” Moya added.
US gasoline demand has decreased sharply, according to the latest government data. Additionally, business survey data indicated a slowdown in US services sector.
And, another key survey this week suggested that Euro Area economy probably contracted in the third quarter.
Market focus now sets on US employment report due out later on Friday for clues over how resilient the economy is.
“The non-farm payroll data tonight, the US CPI, and China’s economic data next week will be key to steering oil’s movements. A resilient economic front can be a short-term positive sign for the demand outlook,” Tina Teng, analyst at CMC Markets, noted.
As of 7:40 GMT on Friday WTI Crude Oil Futures for November delivery were gaining 0.61% to trade at $82.81 per barrel.
Still, WTI Futures looked set for a 9.10% weekly loss.
At the same time, Brent Oil Futures for December delivery were edging up 0.42% on the day to trade at $84.42 per barrel.
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