Oil prices retreated for a fourth session, heading for their widest weekly loss in five weeks on fears the prospect of a big US interest rate hike would dampen demand for the fuel.
Brent was down 63 cents, or 0.83%, at $80.97 a barrel by 1140 GMT. The price of US WTI crude fell by 69 cents, or 0.9%, to $75.04.
Speculations of further rate hikes in the world’s largest economy and Europe clouded the outlook for global growth, sending both crudes down more than 6% this week, their weakest since February.
Moreover, the chairman of the US Federal Reserve warned of a higher and potentially faster pace of rate hikes, saying the Fed was not right to think inflation was transitory.
The larger US employment statistics due out are an important barometer for the health of the US labor market.
The United States has personally urged commodity traders to end concerns over the price of Russian oil shipments to limit supply.
Norway does not fear EU joint gas
Norway, the largest supplier of natural gas in Europe, is not concerned that the EU’s collaborative plan to acquire gas from worldwide sources could result in a monopoly.
Terge Åsland, Norwegian Minister, announced to reporters that following talks with the vice president of the European Commission in Oslo, a platform will be created to ease negotiations concerning commercial matters and aid Norwegian energy companies.
Earlier this month, 22 of the EU’s 27 member states expressed a tentative willingness to pool more than 17 billion cubic meters of gas demand over the next three years.
Ukraine will also participate by looking to buy 2 billion cubic meters ahead of next winter, the EU’s energy policy chief said on Thursday.
The instrument will respond temporarily to the energy shortfall caused by the lack of Russian gas supplies.
At the talks held in Oslo last Friday, they explored the issue of Norway being a dependable provider to the European market. This comes as Norway stepped in to take the place of Russia as the primary gas supplier to Europe in the aftermath of the latter’s incursion into Ukraine in 2014.
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