Oil Set for Steep Weekly Decline on Worsening Demand Outlook

Demand for winter-delivery cargoes has slipped from Singapore to Houston, while the forward curve for both major crude benchmarks has weakened in a sign of ample supply. West Texas Intermediate edged up 0.6% on Friday, remaining near $82 a barrel after Thursday’s slump.

Oil futures are trading near their lowest level since September amid swelling Covid cases in China and aggressive monetary tightening by central banks. A deteriorating market for physical barrels has also weighed on prices. Crude is trading below several key moving averages, sparking so-called technical-based selling, against a backdrop of elevated speculative long positions.

The European Union is poised for a ban on Russian seaborne crude imports starting early December, adding to an uncertain supply outlook for winter, though the market is “getting less scared of a Russian supply cliff,” said Keshav Lohiya, founder of consultant Oilytics. “Rising China Covid cases continue to spook the markets.”

Prices:

• WTI for December delivery gained 0.6% to $82.16 a barrel at 9:49 a.m. London time
• Brent for January settlement rose 31 cents to $90.09 a barrel