Oil heads for weekly loss as EU strives for price-cap compromise

Oil headed for a third weekly loss as the European Union weighs a higher-than-expected price cap on Russian crude and concerns about an economic slowdown threaten the demand outlook.

West Texas Intermediate futures edged higher to trade above US$78 with thin volumes keeping crude in a US$3 range on Friday. European diplomats remain locked in talks over how strict the cap should be, highlighting disagreements between member states. Negotiations are set to resume Friday evening.

The cap talks come before an OPEC+ meeting early next month. Iraq and Saudi Arabia’s oil ministers met on Thursday and said the group could take further measures if required to achieve stability in the market.