Grapevine

Oil set to fall for fourth week as demand concerns weigh on sentiment

An oil pumpjack stands idle near homes on February 09, 2023 in Long Beach, California.

Oil prices rose on Friday but were set for a fourth weekly decline as signs of disappointing global fuel demand growth outweighed fears of supply disruptions in the key Middle East production region.

Brent crude futures gained 33 cents, or 0.4%, to $79.85 a barrel by 0020 GMT, after falling 1.5% in the previous session, while U.S. West Texas Intermediate crude futures rose 38 cents, or 0.5%, to $76.69, after a 2.1% drop on Thursday.

On a weekly basis, Brent futures are on track to fall 1.7%, while WTI futures are set to drop 1.1%. The four weeks of declines are set to be the longest losing streak for both benchmarks since a seven-week streak of weekly losses that ended in early December.

Surveys on Thursday showed weaker manufacturing activity last month across the United States, Europe and Asia, raising the risk of an underpowered global economic recovery that would weigh on oil consumption.

Disappointing economic data from top oil importer China this week, particularly falling manufacturing activity, weighed on prices, adding to concerns about demand growth there after import and refinery activity data for June was lower than last year.