Oil dips on recession fears but tight supply caps decline

Oil prices slipped in Asian trade on Friday as recession fears continued to weigh on sentiment, though worries over tight global supplies capped price declines.

Brent crude futures fell 25 cents, or 0.2 per cent, to $104.40 a barrel by 0311 GMT, dropping away after a near 4 per cent rebound on Thursday. US West Texas Intermediate crude slipped 41 cents, or 0.4 per cent, to $102.32 a barrel, having settled 4.2 per cent higher a day earlier.

Both contracts are set for their second straight weekly loss. Trade this week was marked by a sharp sell-off on Tuesday, when WTI slid 8 per cent and Brent tumbled 9 per cent. Brent’s $10.73 drop was the third biggest for the contract since it started trading in 1988.