Oil is set for its most significant weekly decline in 17 months due to concerns about the global economy adjusting to elevated interest rates.
Brent crude, the global standard, has plummeted close to 11.9% this week, positioning it for its poorest showing since May of the previous year.
Its price today dropped by 0.1% to just under $84 per barrel. The US-derived West Texas Intermediate has similarly decreased by 0.1%, sitting slightly over $82.
The downturn in crude prices has been partly driven by a surge in the US dollar, making commodities pricier for many purchasers.
Furthermore, the pronounced surge in bond yields could hamper economic expansion by increasing the borrowing expenses for both consumers and businesses, which might impact energy use.
The forthcoming trajectory for oil will be influenced by the US monthly payroll figures released at 1.30 pm UK time. The robustness of this data will shape projections regarding the Federal Reserve’s upcoming moves, as they’ve been increasing rates to curb inflation.
Brent crude oil has dropped 13% to around $84 since last Thursday. This represents a decrease of over $13 per barrel, approaching its lowest point since the end of August.
