Oil prices climbed on Friday after a steep drop, pressurized by the US bond selloff.
Unexpected Crash in Oil Prices
Hopes of oil prices surging into the triple-digit range were unexpectedly dashed as prices plummeted by $10 per barrel in the past week. However, optimistic traders are holding onto their bets, pinning their hopes on Wednesday’s OPEC+ decision, anticipating it might rekindle the rally.
Price Recovery After Steep Decline
Oil prices managed to stage a recovery on Friday following a sharp decline. This drop was exacerbated by a US bond selloff that cast a shadow on the economic outlook for 2024.
The latest data from the Energy Information Agency (EIA) added to the pressure, revealing a significant decrease in gasoline demand across the United States.
Friday’s Price Movements
Despite the challenges, Brent futures settled up by 51 cents at $84.58 per barrel on Friday. However, they still marked their most substantial weekly losses since March.
These losses were further exacerbated by concerns arising from the partial lifting of Russia’s fuel export ban, which amplified demand worries in the face of macroeconomic headwinds.
On the other hand, US West Texas Intermediate crude futures settled up by 48 cents at $82.79, reflecting a modest recovery in prices amidst the prevailing uncertainties in the oil market.
