LONDON (Reuters) – Oil prices are broadly stable, but headed for a weekly decline on fears of steep interest rate hikes that could curb global economic growth and fuel demand.
Around 11.50 am Italian Brent futures are gaining 11 cents, or 0.12%, at 90.95 dollars a barrel, even if they are losing 1.9% on a weekly basis.
US crude oil futures are trading up 7 cents, or 0.1%, trading at $ 85.05 a barrel, down 1.8% this week.
Both benchmarks are heading towards a third consecutive week in the red, partly due to the strength of the US dollar, which makes oil more expensive for overseas buyers. The greenback is holding close to last week’s highs, above 110.
Investors are bracing for a rise in US interest rates, with the market also rocked by IEA estimates of near-zero growth in oil demand in the fourth quarter due to weakening demand in China.
Some analysts point out that sentiment has suffered from comments from the US Department of Energy that it is unlikely to fill the Strategic Petroleum Reserve until after financial year 2023.CopyAMP code.
Oil prices could also be supported in the fourth quarter by possible cuts in Opec + production, which will be discussed at the group’s October meeting, as part of the European energy crisis caused by uncertainty over Russian oil and gas supplies.
(Translated by Enrico Sciacovelli, edited by Sabina Suzzi)