HOUSTON
Brent and U.S. crude futures finished at a small loss following a see-saw session, in which prices fell more than $1 a barrel at one point on Friday, as traders tried to reconcile mixed signals for oil demand in the coming year.
Brent futures settled down 6 cents, or 0.08%, at$76.55 a barrel. U.S. West Texas Intermediate (WTI) crude finished down 15 cents, or 0.21%, at $71.43.
The market tumbled earlier in the session after a New York Federal Reserve Bank manufacturing survey showed a third month of declines in new orders, which could be a sign of weaker demand for oil in the coming year.
“What started the sell off was the sharp drop in the New York manufacturing numbers,” said Phil Flynn, analyst at Price Futures Group.
“This market seems a little more sensitive to every new headline,” Flynn added. “They’re still not sure we’ve found the bottom to this market.”
Traders were also shaken by comments from New York Federal Reserve Bank President John Williams on Friday about hopes for interest rate cuts in the coming year.
“We aren’t really talking about rate cuts right now,” Williams said in an interview with CNBC. When it comes to the question of lowering rates, “I just think it’s just premature to be even thinking about that” at this point, he said.
On Thursday Federal Reserve Chairman Jerome Powell said interest rate hikes intended to curb inflation were likely at an end, but left open the possibility for further increases.
