Oil futures declined on Friday, with Brent crude falling by $1.39 (1.87%) to settle at $73.06 per barrel, and U.S. West Texas Intermediate (WTI) dropping by $1.45 (2.05%) to $69.22. Both benchmarks saw their steepest weekly declines since early September, with Brent down over 7% and WTI losing about 8%.
Concerns over slowing economic growth in China, the world’s top oil importer, were a major factor. China’s refinery output has declined for the sixth consecutive month, partly due to the rise of electric vehicles and weak fuel consumption. Although China’s central bank announced economic stimulus measures, market participants found them underwhelming.
Geopolitical factors also played a role, with oil prices affected by U.S. President Biden’s comments on potential Middle East peace talks involving Israel and Iran. Despite some optimism, the killing of a Hamas leader and Hezbollah’s escalating involvement in the conflict added uncertainty. Meanwhile, U.S. crude production reached a record high, helping to prevent a sharper drop in oil prices.