Worst Weekly Drop in Brent, WTI Expected

Worst Weekly Drop in Brent, WTI Expected
Worst Weekly Drop in Brent, WTI Expected

Oil fell for a fourth session on Friday, heading for its biggest weekly loss in five weeks on worries about the prospect of steep interest rate hikes in the United States slowing economic growth and hitting fuel demand.
Brent dipped 39 cents, or 0.5%, to $81.20 a barrel. 
US West Texas Intermediate crude was down 58 cents, or 0.8%, at $75.14, Reuters reported.
Expectations of further rate hikes in the world's largest economy and in Europe have clouded the global growth outlook and driven both crude benchmarks down more than 5% so far this week, their worst drop since early February.
US Federal Reserve Chair Jerome Powell has warned of higher and potentially faster rate hikes, saying the Fed was wrong in initially thinking inflation was "transitory" and was surprised by the strength of the labor market.
The labor market is still seen as tight, even after the number of Americans filing new claims for unemployment benefits increased by the most in five months last week.
"Investors have become increasingly cautious," analysts from Haitong Futures said in a note.
On the supply side, the United States was reported having privately urged some commodity traders to shed concerns about shipping price-capped Russian oil to shore up supply, which suggested more Russian oil might flow into the market.

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