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Oil prices fall 1.5% in week amid global recession fears

Oil prices stabilized on Friday, but fell for the week on a stronger dollar and fears that an economic slowdown would weaken demand for oil.

Brent futures closed at $96.72 a barrel, gaining $0.13. US WTI crude ended 27 cents higher at $90.77. Both benchmarks are down around 1.5% for the week.

Oil briefly bounced in a volatile trade on comments by Richmond Federal Reserve Chairman Thomas Barkin that the Fed would balance its interest rate hike path with uncertainty about any impact on the economy.

But oil pared its gains as investor concerns about upcoming rate hikes eased.

The strength of the US Dollar led to a five-week high for the currency, which also limited oil gains as it makes crude fuel more expensive for buyers in other currencies.

“While the oil complex has been able to get rid of a strong dollar in any given session, the extended strong dollar trends will pose a major obstacle against sustainable oil price gains,” said Jim Ritterbusch of the consulting firm in oil trading Ritterbusch and Associates in a statement.

In a sign of oil supply easing, the price difference between Brent and second-month futures has narrowed by about $5 a barrel since late July to below $1. The spread for WTI has shrunk. to a premium of $0.39, up from nearly $2 at the end of July.

Source: CNN Brasil

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