Oil down over 5% in week ending Feb. 3

Oil prices have fallen more than 5% in the week ending Feb. 3, as investors in the early week awaited the outcome OPEC+ meeting, the US Fed interest rate decision, and data on US crude oil inventories.

Brent crude was trading at $82.10 per barrel at 3.40 p.m. (1240 GMT) on Friday, posting a 5.40% loss from the Monday session that opened at $86.81 a barrel.

The American benchmark West Texas Intermediate (WTI) registered at $75.85 per barrel at the same time on Friday, decreasing 5.58% relative to the opening price of $80.34 a barrel on Monday.

Prices have been caught in a tussle amid demand and supply side uncertainties while awaiting the outcomes of OPEC+ and US Federal Reserve (Fed) meetings.

While the OPEC+ group agreed on a rollover of the previous decision to cut 2 million barrels per day (bpd) until the end of 2023 on Wednesday, the US Fed increased its benchmark interest rate by 25 basis points in line with expectations in a bid to fight inflation.

China’s industrial data is another item on investors’ radar, with trade expected to resume normalcy following the week-long Lunar New Year holidays, which significantly increased the country’s road traffic levels.

A weekly increase of more than 200% has been recorded in a congestion index comprised of 15 of the country’s largest cities.

However, an unexpected build in US crude oil inventories, signaling weaker demand offset some weekly gains, with investor concerns heightened by the Fed interest rate decision.

• OPEC+ and US Federal Reserve