• Oil headed for its biggest weekly percentage drops in a month
• Biden begins sensitive Saudi trip
• U.S. oil rig count inches up by two this week – Baker Hughes

The most recent price collapse will have considerably undermined (Biden’s) case, according to oil broker PVM’s Stephen Brennock.

The U.S. oil rig count, a leading predictor of future production, increased by two this week to reach its highest level since March 2020, according to energy services company Baker Hughes Co.

The most hawkish officials at the U.S. Federal Reserve stated on Thursday that they preferred a rate increase of 75 basis points rather than the larger increase that traders had anticipated following a report on Wednesday that showed inflation was increasing. View More

Brent and WTI lost more than $5 on Thursday, falling below the closing price on February 23, the day before Russia invaded Ukraine, due to worries that the Fed might decide to choose a full 100 basis point rate hike this month and weak economic data. However, both contracts recovered nearly all of the losses by the end of the session.

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However, analysts anticipate that worries about the global economy will continue to put pressure on oil prices.

“This week, the price of Brent has clearly fallen below $100 per barrel. Given that there is a good chance that recession fears won’t go away soon, it is likely to keep falling “In a note, Commerzbank stated.

In addition, repeated COVID-19 outbreaks in China, which have impeded demand recovery, have contributed to bearish market sentiment. View More

According to figures released on Friday, China’s refinery throughput decreased by almost 10% in June from the same month last year, while production for the first half of the year fell by 6%, marking the first yearly decline for the period since at least 2011.

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