Oil prices declined on Friday amid worries about the impact of central banks’ decisions on economic growth.
Investors’ concerns about global economic recession intensified after several central banks hinted at continued tightening of monetary policy to control inflation.
The US Federal Reserve, European Central Bank, Bank of England and others raised interest rates this week, with inflation levels still exceeding target.
The US Energy Department said on Friday it will begin buying back oil for the strategic petroleum reserve, the first purchase since this year’s record 180 million barrel release from the stockpile.
Oil prices were driven this week by China’s ease of epidemic-related restrictions and International Energy Agency’s expectation of rising global oil demand.
Brent crude futures for February delivery fell 2.6%, or $2.17, to $79.04 a barrel, with weekly gains of 3.8%. The US West Texas Intermediate (WTI) crude futures for January delivery also dropped 2.4%, or $1.82, to $74.29 a barrel, recording 4.6% gains.