Losses over 4% per week for oil

International oil prices closed on Friday with losses of both day and week (over 4%), with the new outbreak of the Covid pandemic in China and the forthcoming monetary tightening cycle by central banks blurring the outlook for demand. for energy resources.

The global benchmark, Brent oil delivery Junefell $ 1.68 or 1.6%, closing at $ 106.65 the heavy, with losses of 4.5% for the week.

On the other side of the Atlantic, the American WTI crude delivery in June lost $ 1.72 or 1.7%, closing at $ 102.07 a barrel, down 4.1% on the week, according to FactSet.

“Part of the decline is related to demand concerns over China’s particularly tough anti-Covid policy, which has threatened Shanghai’s big business for weeks. The explosive rise in bond yields, or its strength The dollar and the downturn in the US stock market are also putting pressure, “Commerzbank analyst Carsten Fritsch said in a note to clients.

Fed Chairman Jerome Powell, in a statement on Thursday, paved the way for a rapid and forward-looking rise in US central bank interest rates, with a 50 basis point increase “on the table” at the May meeting.

Markets doubt whether the Fed will find the right balance between an increase that will hit inflation, but also that will not lead the economy into recession.

Production disruptions in Libya, on the other hand, pushed up prices this week, analysts say, as they watch a possible European Union step-by-step cut-off plan from Russian oil imports.

Morgan Stanley analysts have revised their forecast for Brent to $ 130 a barrel from $ 120, expecting a larger production deficit in the coming period.

“Demand is likely to recover more slowly than expected, but supply-side issues go beyond that, especially for Russia and Iran,” they said in a statement.