Oil ends the week with a decline

On Friday morning, oil prices are relatively stable at $84 per barrel. At the same time, the asset ends the week with a decline amid weak statistics from China and signs that the US Federal Reserve may continue tightening monetary policy. 

The current Brent quote is $83.81 per barrel. North American WTI oil is trading near the level of $80.20 per barrel. 

Last week, expectations of a «soft landing» in the US economy pushed oil prices to their peak values since the beginning of 2023. Then Brent was trading above $87.50, and WTI was trading above $84.50 per barrel. The current week was full of less favorable news for the oil market, contributing to the growth of concerns about the Chinese economy and the real estate market. Which, in turn, dampened optimism about global economic growth. 

And statistics from the United States, also released this week, reduced the likelihood of an early end to the cycle of rate increases in the country, which caused the yield of ten-year treasury bonds to rise to the highest since 2007. Analysts note that the current bond indicators suggest a prolonged retention of high Fed rates, which may slow down economic growth and reduce oil demand in the coming months. 

Since the beginning of the week, Brent has lost more than 3% in price, and WTI has lost more than 2%.