Oil headed for its biggest weekly drop since December as the rapidly escalating trade war caused investors to reassess the outlook for global growth, drowning out concern over multiple supply risks.
Futures in New York rebounded as much as 1.4% Friday after plunging 5.7% the day before. Crude is being caught in a stampede out of riskier assets driven by the White House’s blacklisting of Huawei Technologies Co. and several Chinese surveillance companies, moves that have been met with defiance by Beijing. A surprise jump in U.S. oil stockpiles has also weighed on prices this week.
West Texas Intermediate crude for July delivery rose 59 cents, or 1%, to $58.50 a barrel on the New York Mercantile Exchange at 7:37 a.m. in London after being up as much as 78 cents earlier. The contract is down 6.7% this week, heading for the biggest weekly loss since Dec. 21, 2018.