Oil prices head for biggest weekly loss in five weeks

March 10, 2023 (MLN): Oil prices fell for the fourth consecutive day on Friday, with Brent crude dropping 0.6% to $81.11 a barrel and US West Texas Intermediate crude down 0.8% to $75.12 a barrel.

The decline is the largest weekly loss in five weeks, driven by concerns about the prospect of steep interest rate hikes in the US and Europe, which could slow down global growth and impact fuel demand, as reported by Reuters. 

US Federal Reserve Chair Jerome Powell has warned of higher and potentially faster rate hikes, citing the strength of the labor market, which remains tight despite an increase in Americans filing for unemployment benefits last week. This has made investors increasingly cautious, according to analysts.

They also believe that the upcoming US jobs report could further trigger steep declines in financial markets and put pressure on oil prices.

On the supply side, the US has urged some commodity traders to disregard concerns about shipping price-capped Russian oil, which could increase supply and further pressure oil prices.

This came as Russia plans to cut oil exports and transit from its western ports by 10% on a daily basis in March, after trimming oil output by 500,000 barrels per day this month.

Investors are closely monitoring the export cuts from Russia, as they could further impact oil prices.

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