Oil prices fell on Friday after rising earlier in the week as the US government promised to protect bank depositors and a lack of surprises from the US Federal Reserve calmed investors.
West Texas Intermediate for May delivery fell 1 percent to US$69.26 per barrel, but gained 3.8 percent from a week earlier.
Brent crude May contracts fell 1.2 percent to US$74.99 per barrel, but were up 2.8 percent on the week.
Photo: AP
The commodity remains volatile, and as long as concerns over US and European banks remain at the forefront of markets, crude fundamentals might have a limited effect on its price movements, analysts said.
“Crude found support this week after several weeks of unabated pressure,” CIBC Private Wealth senior energy trader Rebecca Babin said.
“Fear around a recession and skittish trading keep many investors in wait-and-see mode,” she added.
Investors also found bullish signals this week, with US exports of crude oil and refined products surging to a record 12 million barrels a day, suggesting a rosier demand outlook.
Meanwhile, Russia extended its 500,000-barrel-a-day crude output cut through June.
However, crude oil prices remained on course for their steepest first-quarter drop since 2020, when the COVID-19 pandemic wiped out demand.
A potential recession in the US, robust Russian oil flows in the face of Western sanctions and strikes at refineries in France have all proved bearish forces.
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