Oil prices post weekly loss as China demand weighs on market

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Traders on Friday studied February nonfarm payrolls data to assess where interest rates — and oil demand — may go.

Crude oil futures posted a weekly loss as lackluster demand out of China collided with a market that the International Energy Agency views as well-supplied.U.S. crude and the global benchmark lost 2.45% and 1.76%, respectively, for the week.

Crude oil imports in China fell about 5.7% to 10.8 million barrels per day in the first two months of the year, compared to 11.44 million barrels per day in December, according to "The big burst of China demand recovery continues to just not pan out and without it, it's going to be hard for these prices to sustain themselves and recover further and get WTI back above 80 bucks," John Kilduff, founding partner at Again Capital, told CNBC.

from cutting rates. Powell told the Senate Banking Committee that the Fed wants more confidence that inflation is moving sustainably at 2%. "When we do get that confidence, and we're not far from it, it'll be appropriate to begin to dial back the level of restriction," Powell said.Kilduff said the petroleum complex's reaction to the interest rate outlook has been "almost schizophrenic." While lower rates are supportive of demand, the Fed will also only cut rates due to slack in the economy and signs of weakness, Kilduff said.

 

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