Oil's losing streak continues for third week

Oil headed for a third straight weekly decline on rising concerns about global demand and a weakening of the war risk premium, with Saudi Arabia blaming speculators for the decline. Global benchmark Brent crude rose above $80 a barrel on Friday but has fallen nearly 5 percent this week. U.S. crude was near $76. Prices rose on Thursday after Saudi Energy Minister Prince Abdulaziz bin Salman made similar criticisms of speculators in May, weeks before the kingdom cut production. Brent has fallen about 13 percent in the past three weeks on bearish demand signals from China, the U.S. and Europe, while flows from the Middle East have been unaffected by tensions between Israel and Hamas. Hedge fund manager Pierre Andurand also cited higher production in the U.S. and Iran as a catalyst for the recent decline, citing higher-than-expected supply. The focus now turns to a refining slump in China and stubbornly high U.S. interest rates. “Investors are wary that the global economic slowdown is likely to weigh on fuel demand, completely alleviating fears of escalating conflict in the Middle East,” said Priyanka Sachdeva, market analyst at Phillip Nova Pte. “The recent decline is unfounded and prices are likely to find support from reduced supply in the Persian Gulf and potential bottlenecks.”