Oil ticks up, but set for third week of losses over demand concerns

Oil prices rose slightly in Asian morning trade on Friday, but were set for a third straight week of losses after markets witnessed dramatic drops on fears of a weakening U.S. economy and slowing Chinese demand.

Brent crude rose 30 cents, or 0.4%, to $72.80 a barrel at 0250 GMT, while U.S. West Texas Intermediate was up 30 cents, or 0.4%, at $68.86 a barrel after four straight days of losses.

For the week, Brent was set to close down 8.5%, while WTI was set to close 10.3% lower.

“It has been a double whammy for oil prices,” said Jun Rong Yeap, a market strategist at IG in Singapore.

“Renewed U.S. banking fallout (has prompted) fears of a wider contagion and amplifying recession talks, while a surprise contraction in China’s manufacturing activities pushed back against reopening optimism on oil demand outlook,” he noted.

Worries of a U.S. regional banking crisis persisted after PacWest Bancorp said it planned to explore strategic options.

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