Brent crude futures dropped by 0.24% to $79.08 per barrel. West Texas Intermediate crude also fell by 0.01% to $74.36 after increasing nearly 8% this week. Tina Ting, an analyst at CMC Markets in Auckland, predicted further declines in US inflation. She added, "Disappointing data may reignite concerns regarding Federal Reserve policy and limit recent gains."
Prices rose this week due to optimism about economic recovery in China. Oil prices are on track to achieve gains for the second consecutive week after the largest banking failure since the 2008 financial crisis raised concerns among traders and caused market disruptions. Fears of a global banking crisis have eased following the rescue of two banks in the US and Europe, such as UBS's acquisition of the struggling Credit Suisse and First Citizens BancShares' purchase of the collapsed Silicon Valley Bank.
Prices increased by more than 1% on Thursday due to a decline in US crude inventories and the halt of exports from the Kurdistan region of Iraq, alleviating pressure from a smaller-than-expected drop in Russian supplies. Producers have reduced output at several oil fields in the semi-autonomous Kurdistan region in northern Iraq after the northern export pipeline was shut down. The US Energy Information Administration reported that crude inventories in the US unexpectedly fell during the week ending March 24, marking the lowest level in two years.
