WTI crude futures fell to around $71 per barrel on Friday and were on track to decline for the second straight week, as economic fears and the prospect of higher global supply outweighed Saudi Arabia’s announcement of another output cut in July.
Investors continued to grapple with the prospect of further interest rate hikes from major central banks that could negatively impact overall demand, as well as heightened economic uncertainties in top crude importer China.
The US oil benchmark also tumbled as much as 4.8% on Thursday following news that the US and Iran reached a temporary nuclear agreement that would allow Iran to resume oil exports of around 1 million barrels per day.
However, both countries denied the report, causing oil prices to recoup most of Thursday’s losses. Meanwhile, Saudi Arabia announced over the weekend its intention to reduce output by 1 million barrels per day to 9 million bpd in July, the lowest level in years amid an effort to support crude prices.
Source: Trading Economics