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3 minute read · October 15, 2022 1:34 AM GMT+5:30 · Last

Updated 2 days ago

Oil prices fall more

than 3% on
recession worries
By Stephanie Kelly

An oil pump of IPC Petroleum France is seen at

sunset outside Soudron, near Reims, France, August
24, 2022. REUTERS/Pascal Rossignol

Summary Companies

Brent and WTI contracts post weekly

decline

U.S. consumer sentiment edges up

October

IEA revises down oil demand forecast,

warns of recession

OPEC+ supply cut seen to give floor to

prices

NEW YORK, Oct 14 (Reuters) - Oil prices

plummeted more than 3% on Friday as
global recession fears and weak oil
demand, especially in China, outweighed
support from a large cut to the OPEC+
supply target.

Brent crude futures dropped $2.94, or

3.1%, to settle at $91.63 a barrel, while U.S.
West Texas Intermediate (WTI) crude
futures fell $3.50, or 3.9%, to $85.61.

The Brent and WTI contracts both

oscillated between positive and negative
territory for much of Friday but fell for the
week by 6.4% and 7.6%, respectively.

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U.S. core inflation recorded its biggest

annual increase in 40 years, reinforcing
views that interest rates would stay higher
for longer with the risk of a global
recession. The next U.S. interest rate
decision is due on Nov. 1-2.

U.S. consumer sentiment continued to

improve steadily in October, but
households' inflation expectations
deteriorated a bit, a survey showed.

The improvement in consumer sentiment

"is being viewed as a negative because it
means the Fed needs to break the spirit of
the consumers and slow the economy
down more, and that's caused an increase
in the dollar and downward pressure on
the oil market," said Phil Flynn, analyst at
Price Futures Group in Chicago.

Latest Updates

Transport Fuels
Oil bounces higher as U.S. dollar's strength eases
6:26 AM GMT+5:30

World
French refinery strike further hits petrol supplies,
prime minister says
1:07 AM GMT+5:30

View 2 more stories

The U.S. dollar index rose around 0.8%. A

stronger dollar reduces demand for oil by
making the fuel more expensive for buyers
using other currencies.

In U.S. supply, energy firms this week

added eight oil rigs to bring the total to
610, their highest since March 2020,
energy services firm Baker Hughes Co said.
read more

China, the world's largest crude oil

importer, has been fighting COVID-19
flare-ups after a week-long holiday. The
country's infection tally is small by global
standards, but it adheres to a zero-COVID
policy that is weighing heavily on economic
activity and thus oil demand.

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The International Energy Agency (IEA) on

Thursday cut its oil demand forecast for
this and next year, warning of a potential
global recession.

The market is still digesting a decision last

week from the Organization of the
Petroleum Exporting Countries and allies,
together known as OPEC+, when they
announced a 2 million barrel per day (bpd)
cut to oil production targets.

Underproduction among the group means

this will probably translate to a 1 million
bpd cut, the IEA estimates.

Saudi Arabia and the United States have

clashed over the decision.

Meanwhile, money managers raised their

net long U.S. crude futures and options
positions by 20,215 contracts to 194,780 in
the week to Oct. 11, the U.S. Commodity
Futures Trading Commission (CFTC) said.

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Reporting by Stephanie Kelly in New York; additional

reporting by Shadia Nasralla in London, Emily Chow
in Singapore Editing by David Evans, Will Dunham
and Marguerita Choy

Our Standards: The Thomson Reuters Trust

Principles.

Stephanie Kelly
Thomson Reuters
A New-York-based correspondent covering
the U.S. crude market and member of the
energy team since 2018 covering the oil and
fuel markets as well as federal policy around
renewable fuels.

Read Next / Editor's Picks

OPEC
OPEC+ members line up to endorse output cut
after U.S. coercion claim
3:21 AM GMT+5:30

OPEC
Saudi king Salman says kingdom seeks stability
and balance in oil markets
3:13 AM GMT+5:30

Transport Fuels
Oil bounces higher as U.S. dollar's strength eases
6:26 AM GMT+5:30

OPEC
OPEC secretary general says oil output cuts were
pre-emptive
12:39 AM GMT+5:30

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Energy

French refinery strike

further hits petrol
supplies, prime minister
says
World · October 17, 2022 · 1:07 AM GMT+5:30
Petrol supplies at French service stations fell
further over the weekend due to a weeks-long
strike at oil major TotalEnergies , Prime
Minister Elisabeth Borne said on Sunday,
prompting possible further requisitioning of
services.

N2:CMPNY
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supply halt
October 16, 2022

Gas
EU leaders set to explore gas price cap options
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'great fluctuations'
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