Oil headed for a fourth weekly decline as demand concerns in the world’s two biggest economies overshadowed heightened geopolitical risk.
Brent crude traded near $80 a barrel after sliding more than 1% Thursday, while West Texas Intermediate was below $77. Factory gauges in the US and China both showed contractions this week, signaling weakness in manufacturing.
Oil is set for its longest run of weekly losses since December as demand concerns linger in No. 1 importer China and OPEC+ prepares to boost production starting next quarter — a plan it reiterated at a monitoring meeting Thursday. Yet officials have insisted supply hikes can be paused or reversed as needed.
If the market softness continues, “core OPEC+ members might well decide to delay the phasing-out of cuts for another quarter — kicking the can down the road in the hope that demand improves,” said Callum Macpherson, head of commodities at Investec Plc.
Crude prices jumped Wednesday after the killing of Hamas and Hezbollah leaders stoked tensions in the Middle East. Futures remain modestly higher this year amid expectations that US monetary easing will boost consumption, with Federal Reserve Chair Jerome Powell suggesting an interest-rate cut could come as soon as September.
