On Wednesday, the Federal Reserve of the United States indicated that it will continue to raise interest rates next year, even as the economy heads toward a possible recession. On Thursday, the Bank of England and the European Central Bank also raised the cost of credit to fight inflation.
Brent futures, however, registered their biggest weekly rises since early October. However, this week’s gains follow the worst weekly decline since August for the benchmark market.
Heavy crude benchmarks strengthened as the closure of the Keystone pipeline between Canada and the United States continues without a restart schedule. While the outage supports prices for heavier crude oil grades, it’s “doing nothing” for lighter global benchmarks, said Matt Smith, principal oil analyst at Kpler.
Oil prices briefly erased some losses after officials said the US Department of Energy will buy back 3 million barrels of domestic crude for the Strategic Petroleum Reserve, the first purchase since this year’s record release of 180 million barrels of reserves.
Source: Ambito
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