Oil eases on Friday, after sliding throughout the week on recession fears and dwindling demand. 

US economic data and a rise in the country’s gasoline inventories raised concerns about a recession and slower global oil demand, Reuters reports.

A barrel of European benchmark Brent goes for USD 81.16, marginally up from USD 81.15 on Thursday afternoon. US equivalent West Texas Intermediate simultaneously trades at USD 77.45, up from USD 77.33.

”Market sentiment remained bearish after the weak U.S. economic data, along with expectations of interest rate hikes, fuelling worries over a recession that could dent oil demand,” says Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities, to Reuters.

Kikukawa also expects WTI to trade in the USD 75-80 range next year, amid investors’ scrambling for determining petroleum demand going in on the summer driving season, and if China’s oil demand will really pick up in the second half of the year.

The weekly unemployment rate rose last week, indicating that the US labor market is starting to show signs of repeated interest spikes, shows report, according the Reuters.

A Reuters survey suggests that China may cut refined oil product export flows in the latter part of 2023 as domestic demand improves, weaning off the need to strengthen the nation’s economy through exports.