Oil Climbs as Dollar Slips

Oil Climbs as Dollar Slips
Oil Climbs as Dollar Slips

Oil climbed on Friday as the dollar eased and supply risks lingered, while recession fears and China’s Covid outbreaks kept a check on prices.
Brent crude futures were up $1.84, or 1.9%, to $96.51 a barrel. The contract is headed for a weekly climb of more than 0.5%, Reuters reported.
US West Texas Intermediate crude futures were up $1.94, or 2.2%, at $90.11 a barrel, on course for a weekly gain of more than 2%.
Both contracts rose as the dollar slipped. A weaker dollar boosts oil demand, as it makes the commodity cheaper for those holding other currencies.
While demand concerns weighed on the market, supply is still expected to be tight, with Europe's upcoming embargoes on Russian oil starting and a slide in US crude stockpiles.
The Bank of England warned on Thursday that it thinks Britain has entered a recession and the economy might not grow for another two years.
ANZ analysts pointed to signs of weaker demand in Europe and the United States with people driving less and Amazon warning of weaker sales, which could dampen demand for distillate.
Underscoring demand concerns, Saudi Arabia lowered December official selling prices for its flagship Arab Light crude to Asia by 40 cents to a premium of $5.45 a barrel versus the Oman/Dubai average.
The cut was in line with trade sources' forecasts, which were based on a weaker outlook for Chinese demand.

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