Global Oil prices enclosed lower on Friday as demand concerns emerged subsequent interest rate hikes in the week, while new sanctions on Iran capped the downside.
Brent crude futures fell 83 cents, or 0.8 per cent, to $118.98 a barrel.
While US West Texas Intermediate (WTI) crude futures fell to $116.79 a barrel, down 80 cents, or 0.7 per cent.
If losses hold over the day, Brent crude futures would post their first weekly dip in five weeks, while U.S. crude futures would see their first slope in eight weeks.
Central banks across Europe elevated interest rates on Thursday, some by amounts that stunned markets, and hinted at even higher deriving costs.
To come to tame soaring inflation that is eat away savings and squeezing corporate profits.
Argentina’s central bank upraised its benchmark interest rate by the most in three years on Thursday.
As the South American country fights inflation running at over 60 per cent.
Those moves came on the heels of a 75 basis point rate hike this week by the US Federal Reserve, the peak since 1994.
Federal Reserve policymakers are less confident than at any time.
Since the height of the pandemic about what will occur with the economy, data showed.
US stock indexes also closed sharply lower on Thursday in a broad sell-off as recession fears grew.
The International Energy Agency on Wednesday also advised that:
Sky-high oil prices and fading economic forecasts lowered the future demand outlook.
Investors also continued focused on tight supplies after the United States publicized new sanctions on Iran.
Comments “A rebound in China demand sentiment, and expected seasonal ramp-up in OECD oil demand into August leaves price risk to the upside through 3Q 2022,”
Said Baden Moore, head of commodities research at the National Australia Bank.