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Oil prices fell more than 3% on Friday as global recession fears and weak oil demand, especially in China, balanced support from a large cut of supply target by the OPEC+ alliance.
Brent crude futures dropped to settle at $92.39 a barrel versus the opening level at $95.295, while US crude, WTI, futures fell to $85.67 from the opening price at $95.295.
The Brent and WTI contracts both oscillated between positive and negative territory for much of Friday but fell for the week by 6.4% and 7.6%, respectively.
On Thursday, US core inflation recorded its biggest annual increase in 40 years, reinforcing views that interest rates would stay higher for longer with the risk of a global recession. The next U.S. interest rate decision is due on Nov. 1-2.
US consumer sentiment continued to improve steadily in October, but households’ inflation expectations deteriorated a bit, a survey showed.
The improvement in consumer sentiment is viewed as a negative signal because it means the Fed needs to ease consumers and slow the economy down, and that is caused an increase in the dollar and downward pressure on the oil market.
