Oil Inches Up on Weaker Dollar

Oil Inches Up on Weaker Dollar
Oil Inches Up on Weaker Dollar

Oil prices reversed earlier losses and inched up in Asian trade on Friday, supported by a weaker US dollar and falling diesel inventories, while Saudi Arabia and Washington continued to clash over plans by OPEC+ to slash production.
Brent crude futures rose 31 cents, or 0.3%, to $94.88 per barrel, while US West Texas Intermediate crude futures were up 36 cents, or 0.4%, at $89.47 per barrel, Reuters reported.
China, the world's largest crude oil importer, has been fighting Covid flare-ups after its weeklong National Day holiday earlier this month and just ahead of a key Communist Party Congress where Chinese President Xi Jinping is expected to extend his leadership.
The country's infection tally is small by global standards, but it adheres to a zero-Covid policy that is weighing heavily on economic activity.
Both Brent and WTI contracts were down for the week by about 3% after two prior weeks of gains amid recession concerns.
"Crude prices had a rough week ... The demand outlook got crushed as global recessionary fears intensified on concerns inflation will force the Fed to overtighten policy and as China continues to deal with Covid lockdowns," said OANDA analyst Edward Moya.
"Last week was all about the OPEC+ production cut and this week was about a deteriorating global outlook that will prevent this market from staying very tight."
The Organization of Petroleum Exporting Countries and allies, known as OPEC+, announced last week a 2 million barrel per day cut in oil production targets.

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