Oil futures fell on Friday and were headed for a weekly drop of more than 6% on demand concerns from China’s slowing economy and easing supply risk from the Middle East conflict.
Brent crude futures fell 47 cents, or 0.6%, to $73.93 a barrel by 1028 GMT, while U.S. West Texas Intermediate crude was at $70.22 a barrel, down 45 cents. , or 0.6%.
Benchmark indices are expected to fall more than 6% this week, their biggest weekly drop since September 2, after OPEC and the International Energy Agency cut their forecasts for global oil demand in 2024 and 2025.
Fears also eased about a possible Israeli retaliatory attack on Iran that could disrupt Tehran’s oil exports.
In China, the world’s top oil importer, the economy grew at the slowest pace since early 2023 in the third quarter, although consumption and industrial production figures for September exceeded forecasts.
Output at China’s refineries also fell for the sixth straight month as weak fuel consumption and tight refining margins slowed processing.
Meanwhile, China’s central bank launched two financing plans that will initially inject 800 billion yuan ($112.38 billion) into the stock market through newly created monetary policy tools.
Crude oil prices were supported by Energy Information Administration (EIA) figures, which showed U.S. inventories of crude oil, gasoline and distillates fell last week.
U.S. retail sales rose slightly more than expected in September, and investors still estimate a 92% chance that the Federal Reserve will cut rates in November.
“Positive U.S. economic data has helped ease some growth concerns, but market participants continue to monitor potential demand recovery in China following recent stimulus measures,” said Hani Abuagla, senior market analyst. from XTB MENA.
However, markets remained concerned about possible price increases given simmering tensions in the Middle East, and the Lebanese militant group Hezbollah said on Friday it was moving into a new and escalating phase in its war against Israel after the assassination of the Hamas leader. , Yahya Sinwar.
“Although the United States would like to believe that the assassination of the leader is an opportunity to resume serious and meaningful peace talks, it seems more wishful thinking than a realistic alternative,” said Tamas Varga, an analyst at oil brokerage PVM.
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