Oil settles lower, posts over 3.5% weekly loss

Oil prices declined on June 23 amid continued fears of low demand amid signals by central banks that monetary tightening will continue to curb inflation.

The dollar index, which measures its value against a basket of major currencies, rose after statements by Federal Reserve Chair Jerome Powell that the inflation target should be achieved after central banks in the UK, Switzerland, Norway lifted interest rates.

The S&P Global US Purchasing Managers Index (PMI) retreated to 46.3 points in June from 48.4 points in May, the lowest reading in six months.

According to Baker Hughes, the US oil rig count fell by six in the week ended Jun. 23 to 546, the lowest level since April 2022.

International benchmark Brent crude for August delivery settled 0.4%, or $0.29, lower at $73.85 a barrel. The following month contract posted a 3.6% weekly loss.

West Texas Intermediate (WTI) crude for August delivery also edged down 0.5%, or $0.35, to $69.16 a barrel.