NEW YORK- Oil prices rose about 2 percent in volatile trade on Friday but were still heading for a weekly decline as investors worried about a potential recession-driven demand downturn even as global fuel supplies remained tight.
Central banks around the world are raising interest rates to tame inflation, spurring fears that rising borrowing costs could stifle growth, while mass COVID-19 testing in Shanghai this week caused worries about potential lockdowns that could also hit oil demand.
Brent crude futures rose $2.37, or 2.3 percent, to settle at $107.02 a barrel. US West Texas Intermediate crude rose $2.06, or 2 percent, to settle at $104.79 a barrel. Both benchmarks traded in negative territory and then rebounded from session lows.
Brent posted a weekly decline of about 4.1 percent and WTI a loss of 3.4 percent, following on from the first monthly decline since November. Prices tumbled on Tuesday, when Brent’s $10.73 drop was the contract’s third-biggest daily fall since it started trading in 1988.
