Oil rises due to lack of supply; Brent and WTI headed for weekly decline


Oil rose on Friday, supported by tight supply and new sanctions on Iran, but prices were headed for a weekly decline amid interest rate hikes by major central banks, fueling concerns about a sharp economic slowdown.

At 11:07 GMT, crude Brent rose 55 cents, or 0.47%, to $120.42 a barrel, and the West Texas Intermediate in the United States (WTI) it gained 41 cents, or 0.35%, to settle at 118 dollars.

Both contracts gave up more than a dollar earlier in the session.

Brent was heading for its first weekly drop in five weeks and WTI for its first drop in eight weeks, in line with the collapse of stock markets amid fears of a possible recessionas central banks joined in a chorus of sharp rate hikes.

The influence of the macro environment has started to take over from oil-specific fundamentals in recent days,” said Investec’s Callum Macpherson.

However, US sanctions on Chinese and Emirati companies and a network of Iranian firms that help export petrochemicals from Iran provided some support for crude prices.

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