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Oil is expected to decline for the second week in a row

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Oil is expected to decline for the second week in a row


Oil Should Fall for the Second Week in a Row

Oil fell on Friday after concerns over declining Chinese demand and future Federal Reserve interest rates caused it to lose its early gains. It was heading for a second week of losses. According to some sources, China is trying to reduce crude oil imports from certain exporters. However, some Fed officials have made comments this week that have scuttled any hopes of a slowing down in aggressive US rate increases.

Bullish price drivers remain in short supply at the moment. Oil prices could still end the year strongly with the EU embargo of Russian crude in three weeks. Brent crude fell 7.1% to $89.71 a barrel. West Texas Intermediate (WTI), crude oil in the United States increased 9 cents or 0.1% to $81.73.

Both indices will suffer a second week of losses. Brent should fall over 6.12%, and WTI 8.123%.

Despite the imminent December 5 ban by the European Union on Russian crude oil and tightening supply, recession worries have dominated this week. As a result, Brent futures have dropped to as low as $4.28 per barrel since August.



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