Oil rose more than a dollar a barrel on Friday, supported by limited supply, although it was headed for a second straight weekly decline on concern that rising interest rates could push the global economy into recession.
The Chairman of the United States Federal Reserve, Jerome Powellsaid on Thursday that the central bank’s focus on curbing inflation is “unconditional,” adding to fears of more rate hikes, which have hit financial markets.
At 11:14 GMT, crude Brent rose $1.47, or 1.34%, to $111.52 a barrel, while the West Texas Intermediate in the United States (WTI) it gained 1.61 dollars, or 1.54%, to settle at 105.86 dollars.
Both benchmarks are headed for a second consecutive weekly decline.
“Growing recession fears appear to be prompting speculative long selection in both contracts, even as real-world energy shortages are as real as ever,” said Jeffrey Halley, an analyst at brokerage OANDA.
The Organization of Petroleum Exporting Countries and their allies, a group known as OPEC+will meet on June 30 and are expected to stick to an earlier plan to slightly accelerate oil production increases in July and August, rather than lift supply.