Doha, Qatar: Oil prices fell more than a dollar a barrel on Friday to record a second straight weekly decline, as disappointing Chinese data added to doubts about demand growth after Saudi Arabia’s weekend decision to cut output.
Brent crude futures fell $1.17 to settle at $74.79 a barrel, while the US West Texas Intermediate crude fell $1.12 to $70.17 a barrel.
Both benchmarks lost more than $3 on Thursday after a media report that a US-Iran nuclear deal was imminent and would result in more supply.
Prices pared losses after both countries denied the report, ending about a dollar a barrel lower.
Oil prices had risen early last week, buoyed by Saudi Arabia’s pledge over the weekend to cut more output on top of the cuts agreed earlier with the Organisation of the Petroleum Exporting Countries and its allies.
However, a rise in US fuel stocks and weak Chinese export data have weighed on the markets.
China’s factory gate prices fell at the fastest pace in seven years in May and quicker than forecasts, as faltering demand weighed on a slowing manufacturing sector and cast a cloud over the fragile economic recovery.
Some analysts expect oil prices to rise if the US Federal Reserve pauses hiking interest rates.
Asian spot liquefied natural gas (LNG) remained flat last week at a two-year low, as ample spot supplies and limited buying activity kept prices steady in a range.
The average LNG price for July delivery into north-east Asia LNG-AS was at $9 per million British thermal units (mmBtu), the lowest since May 2021, industry sources estimated. Key LNG importer China is not expected to increase spot cargo uptake despite an ongoing heatwave boosting power demand, as tepid industrial demand and high coal inventories limit imports.
