Oil's losing streak continues for third week

Oil headed for a third weekly loss as concerns about a slowdown threatened the demand outlook. Oil headed for a third weekly loss after the European Union imposed a higher-than-expected price cap on Russian crude, putting it on track for a decline of almost 3% this week. European diplomats are focused on negotiations over how strict the cap should be. Talks could resume on Friday but could drag on into the coming days. Concerns about demand are growing. Daily COVID cases in China, the world’s biggest oil importer, hit a record this week. Meanwhile, the Institute of International Finance forecasts the world economy will be as weak as it was in 2009 after the financial crisis, as the conflict in Ukraine drags on. Crude oil pared gains made in October after the Organization of the Petroleum Exporting Countries and its allies decided to cut output. In a sign of his stance ahead of the group’s meeting next month, Iraqi Oil Minister Hayyan Abdul Ghani backed the coalition and signaled he would coordinate positions with de facto leader Saudi Arabia. “Crude has been struggling with bearish factors over the last few sessions due to fears of a recession and a surge in Covid cases in China. The ceiling price of Russian oil at $65 to $70 will not have much impact,” said Ravindra Rao, head of commodity research at Kotak Securities in Mumbai.