Brent crude settled down 92 cents, or 1.2%, to $74.99. West
Texas Intermediate U.S. crude futures fell 70 cents, or 1%, to
$69.26 a barrel.
Both benchmarks rose this week as banking sector turmoil eased.
Brent futures rose 2.8% in the week while U.S. crude futures
rose 3.8%. Last week, both benchmarks posted their biggest
declines in months.
"We're riding along macroeconoic headwinds, and there's a
newfound correlation with equities" said John Kilduff, partner
at Again Capital LLC in New York.
Banking stocks slid in Europe with Deutsche Bank and UBS Group
slammed by worries that the worst problems in the sector since
the 2008 financial crisis could persist.
U.S. Treasury Secretary Janet Yellen convened an unscheduled
meeting of the Financial Stability Oversight Council on Friday
The dollar rose 0.6% against other currencies, which also
pressured oil, making crude more expensive to holders of other
The White House said in October it would buy back oil for the
SPR when prices were at or below about $67-$72 per barrel.
On Thursday, Granholm told lawmakers it would be difficult to
take advantage of low prices this year to add to stockpiles,
which are at their lowest level since 1983 following sales
directed by President Joe Biden last year.
Oil drew some support from strong demand expectations from
China. Goldman Sachs said commodities demand was surging in the
world's biggest oil importer, with oil demand topping 16 million
Russian Deputy Prime Minister Alexander Novak said a previously
announced cut of 500,000 barrels per day (bpd) in Russia's oil
production would be from an output level of 10.2 million bpd in
February, the RIA Novosti news agency reported.
That means Russia aims to produce 9.7 million bpd between March
and June, according to Novak, a much smaller output cut than
Moscow previously indicated.
(Additional reporting by Ahmad Ghaddar in London; Yuka Obayashi
in Tokyo and Trixie Yap in Singapore; Editing by Marguerita
Choy, Louise Heavens and David Gregorio)
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