Crude has suffered a volatile week as inflationary pressures keep prices lower and investors look ahead to the latest decision on US interest rates.
WTI approached the US$70 per barrel mark on Friday morning, bottoming at US$74.08 before a slight resurgence to US$74.87, a 3.5% fall on Monday.
Brent remained below US$80 heading into the weekend meanwhile, slumping to US$77.73 before climbing to US$78.55 at midday on Friday, a drop of 3.7%.
Confirmation that the US economy slowed more than expected in the first quarter on Thursday, following repeated warnings of recession have weighed into oil prices.
Crude has fallen steadily since mid-April as a result, trouncing the effects of OPEC+ opting to cut production by over one million barrels a day early on in the month.
All eyes will be on the US Federal Reserve next week when it meets on May 2 and 3 to discuss what J. Safra Sarasin bank analysts expect will be a “final” 0.25% interest rate hike.
Though Chinese demand for oil remains the most likely “source of oil price fluctuations in the short-term,” according to Hargreaves Lansdown analyst Sophie Lund-Yates, ongoing economic fears and the Fed’s decision look set to keep weighing in.