Oil prices ease on recession fears and head for 3rd week loss
Oil slumped on Friday as recession concerns quelled fears about demand and put the indicators back on track for a third straight week of losses.
Brent crude futures were down 20 cents, or 0.2%, to $108.83 as of 0428 GMT, giving up earlier gains above $1.
WTI crude futures for August delivery fell 37 cents, or 0.4%, to $105.39 a barrel, while also giving up an early gain of around $1.
Both contracts fell around 3% on Thursday.
On Thursday, the OPEC+ group of producers, including Russia, agreed to stick to its production strategy after two days of meetings. But the producer club has avoided discussing a policy for September and beyond.
Earlier in the session, the market took a breather from Thursday's sale after OPEC+ made no surprises and said it would stick to oil production increases planned for August.
However, it is feared that the uncertainty regarding OPEC+ policy in September and beyond and the aggressive rate hikes by the Federal Reserve will cause a recession in the US and negatively affect fuel demand.
Previously, OPEC+ decided to increase production by 648,000 barrels per day (bpd) each month in July and August.
All eyes are on whether Saudi Arabia or other Middle Eastern oil producers will support production to respond to US demand.
Biden said on Thursday that when he saw the Saudi king and crown prince on a visit this month, he would not directly pressure Saudi Arabia to increase oil production to curb rising prices.
The 74 Norwegian offshore oil workers on Equinor's Gudrun, Oseberg South, and Oseberg East platforms will go on strike from 5 July, possibly shutting down about 4% of Norway's oil production, the Lederne union said on Thursday.
Oil prices are expected to stay above $100 a barrel this year as Europe and other regions try to dissuade themselves from Russian supplies, but economic risks could slow the escalation, according to a survey.
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