HOUSTON- Oil prices held steady on Friday but closed the week lower on profit-taking and as markets weighed supply concerns stemming from Russia’s fuel export ban against demand woes from future rate hikes.
Brent futures settled 3 cents lower at $93.27 a barrel. It fell 0.3 percent in the week, breaking a three week streak of gains.
US West Texas Intermediate crude (WTI) futures rose 40 cents, or 0.5 percent , to $90.03 a barrel, as US oil rig counts fell. The benchmark fell 0.03 percent for the week, the first decline in four weeks.
“Investors are anticipating a slack in demand coming into October as refineries go into maintenance and as a higher interest rate is going to further pressure markets,” said Dennis Kissler, senior vice president of trading at BOK Financial, adding that there was also some profit taking.
The contracts have rallied more than 10 percent in the previous three weeks on concerns about tight supply.
US Federal Reserve officials warned of further rate hikes, even after voting to hold the benchmark federal funds rate steady at a meeting this week.
“Inflation is still too high, and I expect it will likely be appropriate for the (Federal Open Market) Committee to raise rates further and hold them at a restrictive level for some time,” Fed Governor Michelle Bowman said.
A potential further rise in energy prices, she noted, was a particular risk she was monitoring.
