Crude oil prices continued their decline for the third session on Friday, as bets increased on the US Federal Reserve to tighten its monetary policy after inflation rose at the fastest pace in 31 years.
By 7:43 am (GMT), Brent crude contracts for January delivery fell 71 cents, or 0.86 percent, to trade at $82.16 a barrel.
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And US West Texas Intermediate crude contracts for December delivery fell 68 cents, or 0.83 percent, to $80.91 a barrel.
Crude prices witnessed sharp fluctuations during the week between supportive and discouraging factors, but they tend to end the week unchanged.
Crude recorded noticeable gains in the first half of the week due to the adherence of major oil producers in the “OPEC” alliance to follow a cautious policy in production.
But crude erased gains after US Labor Department data on Wednesday showed annual US inflation rose in October.
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And by 6.2 percent on an annual basis, the highest level since November 1990.
And this rise in inflation, which exceeded all expectations, fueled expectations that the Federal Reserve (the US central bank) would advance its plans to raise interest rates.
This led to a noticeable rise in the dollar, and pressure on the prices of commodity contracts traded in the US currency.
Also Wednesday, Energy Information Administration data showed a rise in commercial crude oil inventories in the United States.
And by one million barrels in the week ending November 5, which put more pressure on prices.
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On Thursday, the Organization of Petroleum Exporting Countries “OPEC” lowered its forecast for oil demand in the fourth quarter of this year by 330,000 barrels per day from its forecast last October.
Contributed to the conflicting statements of the US administration regarding the possibility of withdrawing from the strategic oil reserves of the United States.
President Joe Biden has pledged to lower energy prices for American consumers, putting more pressure on prices.
