# Oil prices head for fourth weekly drop as demand fears weigh Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-05-12 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Oil prices drop: U.S. and China demand concerns weigh Meta Description: Latest update on oil prices falling due to economic concerns in the US and China, affecting demand growth in top consumers. Stay informed with the analysis. URL: https://financedigest.com/oil-prices-head-for-fourth-weekly-drop-as-demand-fears-weighhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-05-12t011508z3lynxmpej4b00zrtroptp4global-oil-1736814020684-compressed.jpg) # Oil prices head for fourth weekly drop as demand fears weigh By Rowena Edwards LONDON (Reuters) -Oil prices slipped on Friday, heading for a fourth weekly decline, as renewed economic concerns in the United States and China revived concern about fuel demand growth in the world’s two largest oil consumers. Brent crude futures fell 43 cents, or 0.57%, to $74.55 a barrel by 0931 GMT. West Texas Intermediate (WTI) U.S. crude futures were down 33 cents, or 0.47%, to $70.54. Both benchmarks are [set to fall by more than 1% for the week](https://www.financedigest.com/oil-prices-set-for-weekly-fall-on-stockpile-releases.html "Oil prices set for weekly fall on stockpile releases"), which would be the longest streak of weekly declines since November 2021. With talks over the U.S. government’s [debt ceiling](https://www.financedigest.com/world-stocks-climb-on-hopes-of-successful-debt-ceiling-outcome.html "World stocks climb on hopes of successful debt ceiling outcome") postponed and renewed fears that another regional bank is in crisis, there is mounting concern that the U.S. will enter a recession. Treasury Secretary Janet Yellen said on Friday that the U.S. [faces financial](https://www.financedigest.com/the-changing-face-of-finance-the-impact-of-digital-transformation.html "The changing face of finance – the impact of digital transformation") and economic catastrophe if Congress fails to raise the debt ceiling. And the U.S. Federal Reserve will probably [need to raise interest rates](https://www.financedigest.com/boes-pill-sees-need-for-further-interest-rate-rises.html "BoE’s Pill sees need for further interest rate rises") further if inflation stays high, Fed Governor Michelle Bowman said on Friday, adding that data so far this month has not convinced her that price pressures are receding. Meanwhile, a decline in new loans to businesses in China and weaker economic data there earlier in the week refocused doubts about its [recovery from COVID restrictions](https://www.financedigest.com/europe-sees-travel-recovery-as-covid-restrictions-ease.html "Europe sees travel recovery as COVID restrictions ease") driving oil demand growth. China’s April consumer price data rose at a slower pace and [missed expectations](https://www.financedigest.com/ericssons-quarterly-core-profit-misses-expectations.html "Ericsson’s quarterly core profit misses expectations"), while factory gate deflation deepened, suggesting more stimulus may be needed. The decline in [oil prices](https://www.financedigest.com/oil-prices-rise-as-weaker-dollar-offsets-china-covid-19-concerns.html "Oil prices rise as weaker dollar offsets China COVID-19 concerns") was limited by a signal from U.S. energy secretary Jennifer Granholm that the country could repurchase oil for the Strategic Petroleum Reserve (SPR) after completing a congressionally mandated [sale next](https://www.financedigest.com/e-prescribing-market-sales-revenue-to-substantially-surge-in-the-next-ten-years.html "E-Prescribing Market Sales Revenue to Substantially Surge in the Next Ten Years") month. In addition, the Organization of the Petroleum Exporting Countries (OPEC) kept its global oil demand forecast for 2023 unchanged, as it expects [economic risks to be offset by higher Chinese demand growth](https://www.financedigest.com/economic-growth-risks-jolt-inflation-obsessed-markets.html "Economic growth risks jolt inflation-obsessed markets"). The [oil market is barrelling towards a supply](https://www.financedigest.com/oil-steadies-from-decade-highs-as-iran-talks-kindle-supply-hopes.html "Oil steadies from decade-highs as Iran talks kindle supply hopes") deficit, assuming OPEC delivers on its latest production cuts,” said PVM oil market analyst Stephen Brennock. (Reporting Rowena Edwards in London, additional reporting by Yuka Obayashi in [Tokyo and Andrew Hayley in Beijing; editing by Jason Neely)](https://www.financedigest.com/chinese-envoy-to-japan-calls-on-tokyo-for-support-of-beijing-olympics.html "Chinese envoy to Japan: calls on Tokyo for support of Beijing Olympics") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---