Oil heads for weekly loss as growth fears trump supply tightness
BNN Bloomberg
Oil is set for a weekly loss after choppy trading in which concerns over a demand-sapping slump clashed with signals of tight supply.
West Texas Intermediate was near US$102 a barrel, putting the US benchmark on course for a weekly fall of more than 5 per cent. Prices have swung in a range of more than US$16 this week -- the biggest since March -- which saw both WTI and Brent briefly drop below US$100.
Investors remain concerned that restrictive US monetary policy could herald a recession, and oil has been dragged lower alongside other commodities. Two of the Federal Reserve’s most hawkish policy makers, Christopher Waller and James Bullard, backed raising interest rates by another 75 basis points this month to curb red-hot inflation, while also playing down concerns of a slump.
