Oil Prices Slip on Fed Policy Signals and Strait of Hormuz Concerns
Oil prices slipped on Friday, marking their third straight weekly decline as traders weighed signals from the US Federal Reserve and speculation about diplomatic efforts to restore normal shipping through the Strait of Hormuz.
Brent crude futures settled at $89.31 a barrel, falling 39 cents or 0.43%, while West Texas Intermediate (WTI) crude finished at $83.40, down 13 cents or 0.16%.
The decline reflects uncertainty surrounding global energy supplies and demand, with the Federal Reserve's new Chairman Kevin Warsh indicating that interest rates could be raised later this year to contain inflation.
Higher borrowing costs can weigh on economic activity and fuel concerns about future oil consumption, said Phil Flynn, senior analyst at Price Futures Group. 'The oil market is being influenced by developments affecting refined-product supplies,' he noted, adding that continued Ukrainian attacks on Russian refineries were supporting product markets.