Oil dips on recession fears, slower demand

Oil prices eased for the third straight day on Friday and looked set for a hefty weekly loss as softening U.S. economic data and a rise in U.S. gasoline inventories raised concerns about a recession and slower global oil demand.

Brent futures for June delivery were down by 13 cents, or 0.2%, at $80.97 a barrel at 0330 GMT. West Texas Intermediate crude (WTI) for June delivery slid 9 cents, or 0.1%, to $77.28 a barrel.

Both benchmarks slid by more than 2% to their lowest level since late March on Thursday amid fears of a recession, and were on track for a weekly drop of about 6%.

“Market sentiment remained bearish after the weak U.S. economic data, along with expectations of interest rate hikes, fuelling worries over a recession that could dent oil demand,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

“WTI is expected to trade in the $75-$80 range for the next week as investors try to figure out if U.S. gasoline demand will increase toward the summer driving season, and if China’s oil demand will really pick up in the second half of the year,” Kikukawa said.

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