Oil Prices Head for Weekly Drop on Slowdown Worries

Oil prices slipped on Friday after two days of gains, as market participants weighed worries about a global economic slowdown, which would dampen fuel demand, against expectations of tighter supplies toward the yearend.
Brent crude futures fell 68 cents, or 0.7%, to $95.91 a barrel after settling 3.1% higher on Thursday. US West Texas Intermediate crude was at $89.81 a barrel, down 69 cents, or 0.8%, following a 2.7% increase in the previous session.
Both benchmark contracts were headed for weekly losses of more than 2%, Reuters reported.
US crude inventories fell sharply as the nation exported a record 5 million barrels of oil a day in the most recent week, with oil companies finding heavy demand from European nations looking to replace crude from warring Russia.
Keeping crude supplies snug, US oil refineries plan to keep running near full throttle this quarter, according to executives and estimates, as refiners set aside worries about recession and sliding retail prices to deliver more fuel. 
The rise in US fuel production could partly offset lower oil products exports from China this year, as Beijing prioritizes the local market to curb domestic fuel inflation. 
In a sign of improving supplies, the price gap between prompt and second-month Brent futures narrowed about $5 a barrel from the end of July.