In early trading on Friday, oil prices fell. The market continues to oscillate between fears of a recession hitting the United States and hopes for a strong recovery in fuel demand in China.

U.S. West Texas Intermediate (WTI) crude oil futures fell 35 cents, or 0.5%, to $77.71, while Brent crude oil futures fell 28 cents, or 0.3%, to $84.22 per barrel at 0117 GMT. This drop in oil prices is due to a report released Thursday showing that the number of Americans applying for unemployment benefits increased more than expected last week, reviving recession fears.

Baden Moore, head of commodity research at National Australia Bank, says he expects “the resumption of Chinese demand to be more important for the price outlook until (the second half of) 2023.” The latest data this week on US oil stocks also raised concerns about a slowdown in the world's largest economy, with crude inventories climbing to their highest level since June 2021.