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Oil Rises But Set For Hefty Weekly Loss

Oil prices rose on Friday, but were set for a weekly loss of about 10 percent on growing worries over fuel demand.

Benchmark Brent crude futures climbed 0.7 percent to $94.78 a barrel, but were on track for a weekly loss of 14 percent.

WTI crude futures rose half a percent to $89 a barrel, on course for a weekly loss of nearly 10 percent.

Crude prices languished near their lowest since the start of the conflict in Ukraine amid rising worries about a possible recession.

An inverted yield curve is often seen as indicator of a future recession.

The closely-watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes reached 39.2 basis points on Thursday, the deepest inversion since 2000.

After delivering a hefty hike in interest rates, the Bank of England on Thursday warned that Britain was facing a recession with a peak-to-trough fall in output of 2.1 percent.

Cleveland Federal Reserve Bank President Loretta Mester said on Thursday that the risks of recession have risen.

Traders await the U.S. Labor Department's jobs data later in the day for clues about the strength of the world's largest economy.

U.S. employment is expected to increase by 250,000 jobs in July after an addition of 372,000 jobs in June. The unemployment rate is expected to hold at 3.6 percent.

The strength of the jobs report could impact the outlook for interest rates, although the Federal Reserve will have much more data to digest before their next meeting in September.

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