Oil drops, poised to biggest weekly gains since early Oct

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Oil dipped on Friday as the market assessed the aftermath of interest rate hikes at central banks, but were poised for the biggest weekly gains in 10 weeks.

Brent crude futures fell 24 cents or 0.3 per cent to $80.97 per barrel by 0508 GMT. West Texas Intermediate futures slipped 29 cents, or 0.4pc, to $75.82 per barrel.

Both benchmarks fell 2pc in the previous session over strong dollars and rate hikes from the central banks in Europe. “The tighter monetary policy is already having an impact on industrial activity. The prospect of further tightening following hawkish comments from policymakers weighed on sentiment,” said analysts from ANZ Research in a note on Friday.

The US Federal Reserve indicated it will raise interest rates further next year, even as the economy slips toward a possible recession. On Thursday, the Bank of England and the European Central Bank raised interest rates to fight inflation.—Agencies