Oil prices jumped around 4% on Friday, boosted by a stronger dollar and the potential of supply restrictions. However, futures fell for the second week in a row as aggressive interest rate rises and China’s COVID-19 limits affected on the demand forecast.
Despite Friday’s rally, both crude benchmarks were set to fall for the week. He believes the Fed should be aggressive in raising interest rates while the economy “can absorb a hit.”
In the week ending September 6, money managers reduced their net long U.S. crude futures and options holdings by 3,274 contracts to 165,158. The European Central Bank’s unexpected 75 basis point rate rise this week has knocked on pricing.