Oil slips as bearish demand sentiment weighs on markets

By Firdevs Yuksel

ISTANBUL (AA) – Oil prices decreased on Friday over weak demand signals fueled by a strengthening dollar and fears of a global economic slowdown.

International benchmark Brent crude traded at $94.16 per barrel at 9.49 a.m. local time (0649GMT) for a 0.28% drop from the closing price of $94.42 a barrel in the previous trading session.

American benchmark West Texas Intermediate, trading at $88.21 per barrel at the same time, decreased 0.27% after the previous session closed at $88.45 a barrel.

OPEC and its allies, known as OPEC+, agreed Wednesday to cut production by 2 million barrels per day as of November.

Oil prices extended gains Thursday as the fallout from the OPEC+ group's aggressive output cut continued.

However, prices came under pressure with demand jitters as the US dollar index, which pits the dollar against a basket of six global currencies, rose to 112.405.

When the dollar gains in value against other currencies, dollar-denominated oil is more expensive for buyers, discouraging trade.

Moreover, concerns over a slowdown in demand were also fueled by weakening global economic sentiment with a rise in recessionary risks.