Oil set for weekly loss as slowdown concerns offset U.S. demand

Oil is heading for a weekly loss as lingering concerns over an economic slowdown overshadowed signs of improving US demand.

West Texas Intermediate futures dropped to near US$89 a barrel on Friday and are down almost 3 per cent for the week after another period of choppy trading. 

Although US gasoline demand is picking up after pump prices tumbled and OPEC’s new Secretary-General sounded a warning over “scarce” spare production capacity, concerns about weakening economic growth around the world continue to hang over the market.