Oil prices slide Friday after a week of stabilization, with price volatility at the lowest since the war in Ukraine started.

A barrel of European reference oil Brent trades for USD 107.19 against USD 108.10 Thursday afternoon. US benchmark crude West Texas Intermediate sells at the same time for USD 102.70 against USD 103.75.

Western sanctions against Russia have been a big factor in pressuring global oil supply. Steep price increases, also playing a powerful role in driving inflation to new heights, have prompted the International Monetary Fund to downgrade its global economic growth forecast by a full percent point.

Oil prices are, on the other hand, tempered by reduced demand from China, which has imposed lockdowns throughout much of the country to halt the spread of Covid-19 infections.

On Thursday, US Federal Reserve Chair Jerome Powell commented the pronounced interest rate hikes that have strengthened the dollar. A stronger US dollar affects oil prices because crude becomes more expensive for holders of other currencies.

Oil prices stabilize despite shock

Reduced oil supply sends prices soaring