Markets

Despite day-on-day increases on Monday and Tuesday, futures prices for benchmark crudes ICE Brent, NYMEX WTI, and DME Oman posted their fourth consecutive weekly drops though they were still higher than the multi-month lows hit during the previous week on May 3-4.

The bears were in charge throughout most of the week ending May 5 as poor economic data from the US and China and more interest-rate increases by the central banks of the US and Europe continued to drag down futures prices for ICE Brent, NYMEX WTI, and DME Oman.

Economic concerns and a further strengthening of the US dollar pulled down futures prices for ICE Brent, NYMEX WTI, and DME Oman over the week ending April 28.

A strengthening US dollar and concerns about potential interest-rate hikes helped to reignite bearish sentiment over the week ending April 21, and futures prices for ICE Brent, NYMEX WTI, and DME Oman dropped by more than 5% from the previous Friday.

After data showed slower-than-expected inflation in the US and China in March, OPEC warned of downside risks to demand in the upcoming summer, but the IEA projected that worldwide oil demand will reach a new record high this year.

The producers group unexpectedly announced a 1.16MM-b/d reduction in its collective output target on April 2, and oil prices soared in response.

A disruption to crude exports from Iraqi Kurdistan remained in focus throughout most of the week ending March 31, keeping traders' attention on the possibility of supply tightness.

The easing of concerns related to banking systems as well as a dip in the value of the US dollar supported a recovery in petroleum futures from losses during the previous week.

The failures of two US banks—Silicon Valley Bank (SVB) on March 10 and Signature Bank on March 12—shook equities markets and dragged commodities, including oil, down as well.

Despite day-on-day increases for ICE Brent, NYMEX WTI, and DME Oman crudes on Monday and Friday, the futures contracts lost around 3% over the week ending March 10 as traders focused on the possibility of sharper interest-rate hikes by the US Federal Reserve.