Oil on Friday fell for a second consecutive week even as an earnings-driven rally on Wall Street pushed prices higher.
West Texas Intermediate for June delivery rose the most in almost four weeks, rising 2.7 percent to US$76.78 per barrel, but fell 1.4 percent from the previous week. It was boosted by risk-on sentiment that benefited commodities across the board.
Brent crude for June delivery also gained 2.7 percent to close at US$80.33 per barrel, but was down 1.63 percent from last week.
Photo: Reuters
Oil tracked broader market trends this week as many traders avoid staking big positions while they await the next US central bank decision.
Crude swung sharply this month, surging to a 15-month high after OPEC and its allies announced an output cut. Prices then gave up those gains amid technical pressures and a deteriorating outlook.
Recent economic data shows that US inflation continues to accelerate, bolstering expectations that the US Federal Reserve would keep raising rates and heightening the chances of a demand-sapping recession.
Meanwhile, supply from Russia has remained resilient despite G7 sanctions, and China’s rebound has been slower than some anticipated.
Falling profit margins for refiners in Asia are already flashing weakness in the biggest oil-importing region, but China’s recovery is starting to take hold.
Top Chinese refiner China Petroleum and Chemical Corp (中國石油化工) said that the nation’s rebound would boost demand growth for refined oil products by more than 10 percent this year.
First-quarter earnings for oil blew out expectations with industry giants ExxonMobil Corp and Chevron Corp raking in profits not seen since oil topped US$145 a barrel in 2008, nearly double the current price it has been hovering near.
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