Oil supported by supply threats, but heads for weekly drop on demand fears

Oil prices rose on Friday as investors considered Russia’s threat to halt oil and gas exports to some buyers, but crude was set for a second straight weekly decline as central banks’ aggressive rate hikes and China’s Covid-19 curbs weighed on demand. Brent crude futures rose 27 cents, or 0.3 per cent, to $89.42 a barrel by 0330 GMT. US West Texas Intermediate (WTI) crude futures climbed 15 cents, or 0.2pc, to $83.69. “I think the selloff in oil prices may come to a pause for now due to a recovery in risk sentiment across the board,” said CMC Markets analyst Tina Teng, adding that a weaker dollar and falls in bond yields have offered support for a rebound in risk assets. “Fundamentally, a sharp decline in the US SPR suggests that undersupply is still a predominant issue in the physical oil markets, though recession fears may continue to weigh,” Teng added.