Oil heads for worst losing run this year on recession fears

Oil headed for a third weekly drop, its longest losing run this year, on concern that a potential recession will cut into energy demand.

West Texas Intermediate edged above $106 a barrel after tumbling on Thursday as commodities were pummelled. The US benchmark has shed about 1 per cent this week despite signs that the physical crude market remains very tight.

Oil fell about 8 per cent in June as investors fretted over a potential global slowdown, eroding a rally spurred by the crisis in Ukraine, interruptions to supplies and rising demand.

The Organization of Petroleum Exporting Countries and its allies ratified an oil-production increase this week, completing the return of supplies halted during the pandemic. Average retail gasoline prices have eased slightly in recent weeks after hitting a record above $5 a gallon in June.


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