Oil Posts Weekly Decline as Recession Fears Muddle the Outlook
- WTI futures settled over $104 and dropped 3.4% this week
- Fed tightening monetary policy to rein in elevated inflation
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Oil posted a weekly decline as volatile trading and recession fears overshadowed a fundamentally tight supply picture.
West Texas Intermediate crude futures rose to settle over $104 a barrel on Friday, but it wasn’t enough to stave off a weekly decline of 3.4%. Investors remain concerned that restrictive US monetary policy could herald a recession. Still, physical signals remain robust, especially in the US, where the prompt timespread, which closely reflects the supply and demand balances at the country’s biggest storage hub in Cushing, Oklahoma, surged to the highest level since March earlier in the week.