Oil prices edged higher on Friday but were headed for a fourth consecutive week of losses. This was due to concerns over slowing economic growth and weaker demand, which largely offset a brief boost from rising tensions in the Middle East.
Crude Prices tumble after weak economic data
Crude prices had tumbled in the previous session, cutting short a brief recovery. This was after a slew of weaker-than-expected purchasing managers’ index (PMI) data from the U.S. ramped up worries about a slowdown in global economic growth. The disappointing economic data followed dismal readings from China, the world’s top oil importer.
OPEC+ meeting fails to move oil markets
Oil markets took muted cues from a meeting of the Organization of the Petroleum Exporting Countries and allies (OPEC+). The cartel made no changes to its production policies and reiterated that it could pause plans to increase output from October.
Brent and WTI prices set for weekly losses
Brent oil futures for October delivery rose 0.4 percent to $79.84 per barrel, while West Texas Intermediate (WTI) crude futures gained 0.4 percent to $75.71 per barrel by 21:24 ET (01:24 GMT). However, both Brent and WTI prices were set to lose between 0.4 percent and 0.9 percent for the week, after sinking to near two-month lows.
Read more: Oil price rallies amid Middle East tensions and OPEC+ meeting, China concerns linger
Economic slowdown concerns drive oil weakness
The weakness in oil prices was primarily driven by growing concerns that an economic slowdown will dampen oil demand in the coming months. This was reinforced by the weak manufacturing PMIs from both the U.S. and China this week.
China’s growth plans remain unclear
China remained a major concern for oil markets, as Beijing provided scant details on how it planned to bolster economic growth in the world’s largest oil importer. In the U.S., the Federal Reserve signaled a potential interest rate cut in September, but traders feared it might be too late to prevent a hard landing for the economy.
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