Oil prices fell 2%, recording the second weekly loss, as supply concerns eased, with Brent crude settling at $87.62 a barrel.

19-11-2022


(Reuters) - Oil fell about 2 percent on Friday, recording its second consecutive weekly loss, due to concerns about falling demand in China and further measures to increase US interest rates.
Brent crude settled at $87.62 a barrel, down $2.16, or 2.4 percent, while the US West Texas Intermediate crude price was $80.08 a barrel, down $1.56, or 1.9 percent.
The benchmark recorded weekly losses, with Brent losing about 9 percent and WTI about 10 percent.
The rise in the US dollar, which makes oil more expensive for holders of other currencies, contributed to the decline in crude prices.
And the market witnessed a shift in the two ways indicating the easing of concerns about supplies.
Crude approached record highs earlier in the year as Russia's invasion of Ukraine fueled those fears. In addition, the nearest-maturity contracts recorded a huge price premium compared to the later-term contracts, indicating the concern of dealers about the immediate availability of oil and their willingness to pay large sums to secure supplies.
But these concerns are diminishing. Eikon Refinitiv data showed that WTI is currently trading at a discount compared to the following month, for the first time since 2021.
This situation is also beneficial for those seeking to increase their oil stocks for later use, especially since stocks are still at low levels.
Brent crude remains in the opposite pattern, although the premium for the nearest crude contract, compared to contracts for download six months later, fell to $3 a barrel, the lowest since April.


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