Houston (Reuters) -Oil slipped on Friday, posted a weekly loss of nearly 5%, at a weaker prospect of global growth, higher interest rates and Covid -19 locking in China which hurt demand even when the European Union considers Russian Russian oil prohibitions It will tighten supply.

Brent crude settled $ 1.68, or 1.6%, at a price of $ 106.65 per barrel. The US Texas West Texas (WTI) intermediary fell $ 1.72, or 1.7%, to $ 102.07.

Brent’s global benchmark reached $ 139 per barrel last month, the highest price since 2008, but the two oil benchmarks decreased by almost 5% this week due to demand problems.

The International Monetary Fund, which this week cuts for estimates of its global economic growth for 2022, can reduce it if the Western countries expand their sanctions on Russia for its war against Ukraine, and energy prices rise further, said Official No. 2 of these agencies.

The German government will cut its growth estimate for 2022 to 2.2% from 3.6%, the word government said, while China’s demand for gasoline, diesel and aviation fuel in April is expected to slide 20% from the previous year, Bloomberg reported, Because many of the largest city in China, including Shanghai, are in Kuncian Covid.

Federal Reserve Chairman Jerome Powell said on Thursday that a half-percent increase from US interest rates “will be on the table” at the next Fed policy meeting in May, pushing dollars to more than two years. Stronger greenback makes oil and other commodities more expensive for those who hold other currencies.

“At this stage, the worries of China’s growth and sacrifice by The Fed, limit the growth of A.S., seems to balance worries that Europe will soon expand sanctions on the import of Russian energy,” said Jeffrey Halley, analyst at Broker Oanda.

Spekulant clean long bets on the US dollar fell for a third in a row-hearted week, according to the calculation by Reuters and the US commodity trading commodity data released on Friday.

Crowded supply

On the supply side, the Russian Kazakh Kaspian Pipe Consortium (CPC) is expected to continue its full exports from April 22 after almost 30 days of interference, the source said.

Number of Oil Rigs A.S. Up one to 549 this week, the highest number since April 2020, according to Baker Report Hughes Co.

However, tight supply provides support because Libya lost 550,000 barrels per day (BPD) output due to interference. Supply can be further extended if the EU imposes the embargo on Russian oil.

The European Union source told Reuters this week that the European Commission worked to accelerate the availability of alternative energy supplies, while the White House’s senior advisor said he was sure Europe was determined to close or further limiting the remaining export of Russian oil and gas.

The Netherlands said he planned to stop using Russian fossil fuels at the end of this year.

Morgan Stanley (NYSE: MS) Increases the estimated price of the third quarter of $ 10 a barrel to $ 130, citing “a larger deficit” this year due to lower supply of Russia and Iran, which is likely to exceed the short-term demand headwinds.

European distillation processes 9.04 million BPD crude oil in March, down 4% from the previous month and 4.8% higher than the previous year, the Euroilstock data showed.

Oil distiller A.S. It is expected to have around 1.08 million bpd offline capacity for the week ending April 22, increasing the available purification capacity of 47,000 BPD, Iir Energy research company said.

“Even though we can slide, there is a certain point where we will find support because the fundamentals here are too tight for things that will slide very far,” said Robert Yawger, executive director of Energy Futures in Mizuho.