Oil Heads for 2nd Weekly Drop

Oil Heads for 2nd Weekly Drop
Oil Heads for 2nd Weekly Drop

Oil slipped on Friday and was heading for a second weekly decline, as investors weighed the impact of sharp interest rate rises on energy consumption, offsetting hopes of higher Chinese demand and output cuts by OPEC and its allies.
To fight inflation, the US Federal Reserve is trying to slow the economy and will keep raising its short-term rate target, Federal Reserve Bank of Philadelphia President Patrick Harker said on Thursday. 
Brent crude slipped by $1.16, or 1.3%, to $91.22 a barrel. US West Texas Intermediate crude was down by 74 cents, or 0.9%, to $83.77, Reuters reported.
Brent, which came close to its all-time high of $147 a barrel in March, is on track for a weekly drop of 0.4%, while US crude was set to fall over 2%. It would be the second consecutive weekly drop for both benchmarks.
Oil gained a lift on Thursday after Bloomberg News reported that Beijing was considering cutting the quarantine period for visitors to seven days from 10 days. There has been no official confirmation from Beijing.
Oil gained support from a looming European Union ban on Russian oil, as well as the output cut agreed earlier this month by the Organization of Petroleum Exporting Countries and allies, including Russia, known as OPEC+.

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