October 27, 2022 [International The News] – Oil prices rose in choppy trade on Friday as hopes of stronger Chinese demand and a weakening U.S. dollar outweighed concern about a global economic downturn and the impact of interest rate rises on fuel use.
To fight inflation, the U.S. Federal Reserve is trying to slow the economy and will keep raising its short-term rate target, Federal Reserve Bank of Philadelphia President Patrick Harker said on Thursday in comments that weighed on oil.
But crude is gaining support from a looming European Union ban on Russian oil, as well as the recent 2 million-barrels-per-day output cut agreed by the Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+.
Brent crude was up 4 cents at $92.42 a barrel by 1513 GMT. U.S. West Texas Intermediate crude (WTI) fell 32 cents to $84.19. During the session, both benchmarks had been down by more than a dollar. Traders were squaring up positions ahead of the weekend after the WTI’s November contract expiry, increasing volatility, said Bob Yawger, director of energy futures at Mizuho in New York.
