Urgent: Despite oil recovery, it fell on a weekly basis. China, Russia and the Federal Reserve are behind
Oil ended its weekly session violently higher with gains of more than 3% in the last 24 hours, returning fears of rising inflation to the markets.
Crude is now at $86.1 a barrel, up 3.06%, while Brent is up 3.67% at $92.42 a barrel.
Oil fell to a weekly low of $81.3 a barrel yesterday before regaining its bullish compass and gaining $5 in two days.
Some experts explain the rise in the US stock market and its upward closing by the return of confidence in the markets with the drop in inflation with the drop in energy levels at the beginning of the week that has not lasted in recent days.
Weekly losses continue
Oil prices rose around 4% in the last trading session of the week on the back of real cuts and threatened to squeeze supplies. However, futures posted a second weekly decline as demand prospects faltered due to aggressive interest rate hikes and coronavirus restrictions in China.
Reasons for decline and wait
Despite Friday's rally, both benchmarks are still expected to fall this week, with Brent crude falling around 0.2% for the week after briefly touching its lowest level since January. West Texas Intermediate crude posted a weekly decline of 0.1%.
A slight drop in OPEC+ oil production plans revealed this week also helped support prices. Russian President Vladimir Putin has threatened to restrict oil and gas supplies to Europe if a price cap is put in place.
Federal Reserve Bank of China
Prices were also affected by the unexpected 75 basis point interest rate hike by the European Central Bank this week and additional COVID-19 lockdowns in China.
On Thursday, most of Chengdu's population of more than 21 million was placed under lockdown, with authorities in other parts of China advising millions of people to avoid traveling during the impending holiday.
the highest level
Brent crude has fallen significantly since its March rally near an all-time high of $147 when Russia invaded Ukraine, pressured by recession and demand concerns.
In the aftermath of the invasion, the G7 is looking for ways to curb Russia's huge oil export revenue. A US official said Russian oil should be subject to a price cap set at fair market value less any risk premium from Moscow's invasion of Ukraine. A Treasury official told reporters on Friday.