Daily drop of around 0.8% for oil – Profits for the 7th week in a row the WTI

Oil prices closed lower on Friday, but remained in contact with the three-month high as fears of new coronavirus restrictions in Shanghai offset steady demand for fuel in the US, which is the largest consumer.

Oil plunged into negative territory following the Wall Street slump following the announcement of data showing that consumer prices in the US climbed to a new 40-year high in May, with gasoline prices hitting record highs and food prices hitting record highs. launched. The persistent rally of US inflation increases the chances that the US Federal Reserve will tighten its policy more aggressively.

“The worry is that this could be an indicator of consumer habits in the future. Although demand for gasoline is strong now, it seems that if prices do not stabilize, then consumers will make cuts,” said Phil Flynn, an analyst. of Price Futures.

Meanwhile, “Shanghai’s new pandemic restrictions have raised concerns about demand in China. But the losses have been limited by expectations that tight global supply will continue, with strong US fuel demand and a slow increase in crude production. by OPEC + “, announced Kazuhiko Saito of Fujitomi Securities.

“Once we start optimistic about Chinese demand with the lifting of restrictions, and the latest move to lockdown in some areas of Shanghai for mass testing, it is a reminder that there is no change in China’s coronavirus policy,” Kotak analysts said. Securities.

“If it continues to use restrictions to stop the spread, economic activity could be affected.”

China’s crude imports rose nearly 12 percent in May from a year low last year, though refineries continue to face high inventories with lockdowns in China and a slowdown in the fuel economy that weighed on last month.

Back in the US in terms of supply, the number of oil rigs, indicating future supply, increased by six to 580 this week, the highest level since March 2020.

At the same time, pressure on oil prices was exerted by the rise of the dollar, which strengthened today by 0.9%.

In this climate, oil type Brent August delivery fell $ 1.06, or 0.9%, to $ 122.01 a barrel on Friday. In the week, however, Brent recorded gains for the fourth consecutive 5-day period, rising by 1.9%.

The crude type West Texas Intermediate July delivery lost 84 cents, or 0.7%, on Friday, to close at $ 120.67 a barrel on the New York Mercantile Exchange. However, it recorded gains for the 7th week in a row, adding 1.5% to the 5-day period.