© Reuters. General view shows Lukoil company’s oil refinery in Volgograd, Russia April 22, 2022. REUTERS / REUTERS PHOTOGRAPHER
By Emily Chow
SINGAPORE (Reuters) – Oil prices fell on Friday amid recession fears and a stronger US dollar, although damage was limited by supply concerns following Moscow’s new mobilization campaign in the war. with Ukraine and a clear impasse in negotiations over the restoration of the Iran nuclear deal.
Oil futures futures fell 41 cents, or 0.5%, to $90.05 per barrel at 0325 GMT, while US West Texas Intermediate (WTI) crude futures fell 30 cents, or 0. 4% down to 83.19 USD.
Brent and TWI contracts for delivery last month are down 1.5% and 2.3%, respectively, for the week so far.
“With major central banks raising interest rates, the risk of a global recession overshadows the supply problem in the oil market, despite the climb,” said CMC Markets analyst Tina Teng. recent escalation in the Russo-Ukrainian war”.
“However, a sharp drop in US SPR and a drop in inventories may keep oil prices supported for some time as the inevitable supply issue in the physical market remains, while the deal remains in place.” Iran’s nuclear deal is at an impasse,” she said. in the US Strategic Petroleum Reserve, last week fell to its lowest level since 1984.
After the US Federal Reserve rose 75 basis points for the third time on Wednesday, central banks around the world followed suit in raising interest rates, raising the risk of a recession.
“Crude oil prices remain volatile as energy traders grapple with a deteriorating demand outlook and remain vulnerable to shortages,” said Edward Moya, senior market analyst at OANDA.
“Supply risks and tight market conditions should give oil some support above $80, but a faster global downturn will weigh on prices.”
Efforts to revive the 2015 Iran nuclear deal have stalled due to Tehran’s insistence on shutting down investigations by the United Nations nuclear watchdog, a senior State Department official said. lower expectations for a resurgence in Iranian crude.