Oil heads for weekly loss as growth fears trump supply tightness

Oil was set for a weekly loss after choppy trading in which concerns over a demand-sapping slump clashed with signals of tight supply.

Brent Crude was trading at $112.49 a barrel, on Friday, putting the commodity on course for a weekly fall of 4 per cent. Prices have swung in a range of more than $16 this week — the biggest since March — as both WTI and Brent briefly dropped below $100.

Investors remain concerned that restrictive US monetary policy could herald a recession, and oil has been dragged lower alongside other commodities.