Brent crude futures fell 59 cents, or 0.8%, to $74.39 a barrel at 1707 GMT. U.S. crude futures fell 55 cents, or 0.8%, to $70.32.
And both benchmarks are poised for a weekly loss of more than 1%.
And the dollar held onto its modest gains against the euro on Friday, and is on course for the biggest weekly gain since February, as uncertainty over the debt ceiling and monetary policy in the United States led investors to turn to assets that considered a haven of peace.
A stronger dollar makes oil, denominated in greenbacks, more expensive for holders of other currencies.
“Lack of confidence in the economy translates into reliance on the safer dollar and also leads to pessimism about oil demand,” said John Kilduff, partner at Again Capital in New York.
And heightened fears that the United States, the world’s largest oil consumer, is heading into recession after the postponement of the decision to raise the US government’s debt ceiling and growing concern over the bankruptcy of another regional bank.
Fed member Michele Bowman said on Friday the bank may have to raise interest rates again if inflation remains high, adding that this month’s data had not convinced her that pressures on prices were falling.
Meanwhile, Chinese consumer prices rose in April at a slower pace than in March, beating expectations, while falling producer prices reignited doubts that the recovery China’s economy post-pandemic will drive oil demand growth.
The market relied on expectations of a second-half supply shortage, even despite Iraqi Oil Minister Hayan Abdul-Ghani’s statements to Reuters today, Friday, that he does not expect any what the OPEC + alliance decides on a further reduction in production. at its next meeting in Vienna on 3 and 4 June.
On Thursday, the Organization of the Petroleum Exporting Countries (OPEC) kept its forecast for global oil demand growth in 2023 unchanged, adding that increased demand from China would offset the impact of economic risks.
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