Oil prices fell on Friday, adding to big declines in the previous session, as concerns about the possible softening of U.S. demand and broad oversupply offset worries about supply disruption from conflict in the Middle East and war in Ukraine.
Brent crude futures fell 49 cents, or 0.74%, to $65.88 a barrel by 0419 GMT, and U.S. West Texas Intermediate crude fell 51 cents, or 0.82%, to $61.86.
“The (U.S.) inflation battle doesn’t quite look won, which dampens the demand outlook for oil from the world’s largest economy. Even geopolitical unrest is failing to support oil prices, as fundamentals point to an oversupply and lacklustre demand,” said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova.
Government reports on Thursday showed U.S. consumer prices in August increased by the most in seven months and a surge in first-time applications for unemployment aid last week, keeping expectations high that the Federal Reserve will cut interest rates next week to try and boost economic growth, which would in turn drive up demand for oil.
