Oil up as traders cash in on declining prices over global recession fears

By Sibel Morrow

ANKARA (AA) - Oil prices edged higher on Friday after traders availed of profit-taking from Thursday’s low prices, although gains were limited by global recession fears and weak oil demand.

International benchmark Brent crude traded at $91.74 per barrel at 10.07 a.m. local time (1007GMT) for a 0.99% increase from the closing price of $90.84 a barrel in the previous trading session.

American benchmark West Texas Intermediate (WTI) traded at $85.83 per barrel at the same time for a 0.86% gain after the previous session closed at $85.10 a barrel.

Having declined over 3.5% during previous trade over recession fears leading to further weak oil demand concerns, both benchmarks rose in early trade on Thursday as day traders cashed in on low prices.

Nonetheless, price upticks were limited over reports that the US Department of Energy said supplies to replenish the country's emergency oil stocks would likely not start until after the fiscal year 2023 and would not include a trigger price.

Prices came under pressure over investor concerns about a worldwide economic slowdown and the Covid-19 lockdowns in China, the world's largest crude oil importer.

Fears that the Federal Reserve could make a larger rate hike next week to tame inflation also weighed on prices.

Meanwhile, the World Bank warned in a report on Thursday that the global economy could soon face a recession due to monetary tightening policies of central banks and rising interest rates.