Oil prices fall on weak demand, record over 6% weekly losses

Oil drilling rigs

Oil prices declined, on Oct. 14, recording weekly losses on growing concerns about crude demand.

Investor concerns about US economic slowdown intensified, after inflation in the US hit a higher-than-expected level in September, which could prompt the Federal Reserve to continue its interest-rate hike aggressively.

Further, a spike in Chinese COVID cases during the one-week National Day Holiday drove more concerns for slowed demand.

The International Energy Agency (IEA) said the OPEC+ decision to cut oil production last week could push prices higher and tip the global economy into recession.

The US drilling rig count rose eight units to 610 in the week ended Oct. 14, General Electric Co.’s Baker Hughes energy services firm said in its closely followed report on Friday.

Brent crude futures for December delivery traded 3.1%, or $2.94, lower at $91.63 a barrel, recording weekly losses of 6.4%.

US WTI futures for November delivery dropped 3.9%, or $3.50, at $85.61 a barrel, with weekly losses of nearly 8%.