Oil prices decreased around 4% during the week ending April 28, as weak global economic data and the possibility of more interest rate hikes fueled demand concerns.
International benchmark Brent crude was trading at $81.87 per barrel at 1.11 p.m. (1011 GMT) on Friday, posting a 4% fall from the Monday session that opened at $81.87 a barrel.
The American benchmark West Texas Intermediate (WTI) registered at $74.98 per barrel at the same time on Friday, decreasing 3.8% relative to the opening price of $77.97 a barrel on Monday.
Rising interest rates, concerns over the global economy, and a lower fuel demand outlook were instrumental in the decline in prices.
Oil prices came under pressure on expectations that central banks in the US, UK, and Europe would raise interest rates in the first week of May to combat high inflation.
Uncertainties about the US Federal Reserve’s future monetary policy and the central banks of European countries added to the downward movement of oil prices.
Nevertheless, oil prices regained some of their losses on Wednesday when prices started to climb after US data showed that crude stockpiles fell dramatically, indicating an improvement in the country’s demand situation.
The Energy Information Administration announced a 5.1 million-barrel drop in oil stockpiles to 460.9 million barrels during the week ending April 21, against the American Petroleum Institute’s expectation of a draw of 6.08 million barrels.
A weaker dollar supported oil price increases through Thursday. The US dollar index fell, making crude oil less expensive for foreign buyers.
Markets remained optimistic on Friday, with data signaling improvement in US crude demand ahead of the Fed meeting in early May.
