Oil prices set for third straight weekly fall as traders fret about demand outlook

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Oil prices set for third straight weekly fall as traders fret about demand outlook
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William Watts is MarketWatch markets editor. In addition to managing markets coverage, he writes about stocks, bonds, currencies and commodities, including oil. He also writes about global macro issues and trading strategies. During his time at MarketWatch, Watts has served in key roles in the Frankfurt, London, New York and Washington, D.C.

Oil futures were slightly higher Friday, but remained on track for a third straight weekly decline as worries about the outlook for demand have overtaken supply risks tied to the Israel-Hamas war.

“Sentiment has shifted on the oil market: what began as a pricing out of the geopolitical risk premium has ended with a marked correction,” said Barbara Lambrecht, commodity analyst at Commerzbank, in a note. The recent slide in prices “makes it likely that the kingdom will ‘voluntarily’ extend its production cuts once again — presumably for one more quarter” when the Organization of the Petroleum Exporting Countries and its allies meet on Nov. 26, Lambrecht said.

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