Oil Heads for Weekly Decline on Demand Concerns and Gaza Talks

(Bloomberg) -- Oil headed for a weekly loss — after hitting the lowest close since January midweek — on a challenging demand outlook, and US efforts to secure a cease-fire in Gaza.

West Texas Intermediate was steady near $73 a barrel, more than 4% lower this week, while Brent crude closed above $77. Israeli negotiators arrived in Cairo for talks aimed at cementing an agreement to pause the war in the Gaza Strip between Israel and Hamas, a step that could de-escalate tensions in the crude-producing region.

The US oil benchmark has shed almost all of its year-to-date gains as a poor economic outlook in top importer China outweighed the impact of OPEC+ supply curbs. There are also mounting concerns about the trajectory of the US economy, with data on Thursday showing manufacturing activity contracting at the fastest pace this year.

Traders will also track a central bankers’ symposium at Jackson Hole, Wyoming, where Federal Reserve Chair Powell is set to give an address later Friday that could offer clues on the path forward for US monetary policy, which could impact the dollar, as well as wider energy demand.

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