HOUSTON- Oil prices rose about 1 percent on Friday, but fell for the week on worries that strong US economic data would keep interest rates elevated for a longer period, curbing fuel demand.
The Brent crude July contract rose 76 cents to $82.12 a barrel. The more-active August contract closed up 73 cents at $81.84.
US West Texas Intermediate (WTI) crude futures settled 85 cents, or 1.1 percent , higher to $77.72.
On Thursday, Brent closed at its weakest since Feb. 7 and US WTI futures at their lowest since Feb. 23.
Summer demand in the United States is expected to pick up starting this weekend, and some investors are wondering if the selloff was exaggerated, said Dennis Kissler, senior vice president of trading at BOK Financial.
Brent closed down 2.1 percent for the week. It declined for four straight sessions this week, its longest losing streak since Jan 2. WTI settled down 2.8 percent for the week.
Worries over Federal Reserve interest rate policy and last week’s bump in US crude oil inventories weighed on market sentiment, said Tim Evans, an independent energy analyst.
Minutes of the Fed’s latest policy meeting released on Wednesday showed policymakers questioning whether interest rates were high enough to tame stubborn inflation. Some officials were willing to raise borrowing costs again if inflation surged.
Fed Chair Jerome Powell and other policymakers have since said they feel further increases are unlikely.
Higher interest rates increase the cost of borrowing, which can slow economic activity and dampen demand for oil.
