To ‘dive’ over 4% per week oil

Oil fell on Friday, widening its weekly losses as prices fell in the shadow of the prospect of weaker economic recovery, rising interest rates from the Federal Reserve and lockdowns in China due to coronavirus affecting demand, although the European Union considers banning imports of russian oil move that will further reduce supply.

The International Monetary Fund cut its forecast for global economic growth this week, with US Federal Reserve Chairman Jerome Powell saying on Thursday that a half-rate hike would be “on the table” at the next Fed meeting in May.

“At this stage, fears about China’s growth and the Fed’s tightening on US growth seem to offset concerns that Europe will soon expand sanctions on energy imports from Russia,” he said. Jeffrey Halley, OANDA analyst.

“At this stage, fears about China’s growth and the Fed’s tightening on US growth seem to offset concerns that Europe will soon expand sanctions on energy imports from Russia,” he said. Jeffrey Halley, analyst at OANDA.

An EU source told Reuters that the commission was working to speed up the availability of alternative energy supplies in order to reduce the cost of the embargo on Russian oil and persuade “negative” states to agree to impose the measure.

“An EU boycott of Russian energy would boost energy prices, at least immediately,” said Stephen Brennock of PVM.

Price support, however, is provided by the limited supply after the production disruption in Libya, which loses 550,000 barrels per day.

In this climate, oil type Brent is currently down $ 1.73 or 1.6% at $ 106.60 a barrel, while crude West Texas Intermediate loses $ 1.89 or 1.8% at $ 101.09.

Brent and WTI are heading to losses of more than 4% per week.