As worries Looms of slowing global oil demand grew in the wake of softening U.S. economic statistics and an increase in petrol stocks, oil prices declined for the third consecutive day on Friday and appeared to be headed for a significant weekly loss.
At 1130 GMT, Brent futures were down, at $80.55 a barrel. WTI crude for June delivery decreased by 31 cents or 0.4% to $77.06 a barrel.
On Thursday, amid worries about a recession. Both Crude benchmarks fell more than 2 percent to their cheapest level since late March. And they were expect to decline by around 6% for the week.
The market sentiment remained bearish following weak US economic data and projection of interest rate hike, fueling fears of a crisis that could dent oil demands.” said Hiroyuki Kikukawa. The president of NS trading, a part of Nissan (OTC:NSANY) Security.
Oil Prices demand forecast
As investors tried to predict if United States gasoline demand would rise in the lead up to the summers driving season. And whether China’s oil needs will actually increase in the seconds half of the year. Kikukawa stated that WTI is projected to trade around the $75-$80 region for the upcoming week.
Weekly unemployment claims increased last week. According to economic statistics, suggesting that the United States labour markets may be beginning to weaken as the delayed impact of the Federal Reserve’s periodic interest rate hikes takes hold, raising fears about a decrease in fuel demand.
According to National Australia Bank (OTC:NABZY) analysts. The short-term volatility of the oil price is related to market positioning before future interest rate increases.
The Fed, BoE, & the European Central Bank will meet in the first week of May. And the analysts predicted that the downward pressure on oil prices would continue into these gatherings.
As refinery runs and exports increased last week and petrol inventories unexpectedly increased due to weak demand, U.S. crude oil inventories decreased more than expected. According to Energy Information Administration (EIA) data released on Wednesday.