Oil trims weekly gain as broader sell-off dents sentiment

​Oil pared its weekly gain as investors shied away from risky assets on a dimming outlook for China and the wider global economy.

West Texas Intermediate slid below US$88 a barrel on Friday as a risk-off tone spread across wider markets. China's economic growth outlook is darkening as investors bet Beijing will be slow to exit COVID Zero, while in Europe the French and Spanish economies slowed.

Crude is still up around three per cent for the week and there are signs of extreme tightness in U.S. refined products markets. The nearest timespread for gasoline -- a gauge of market strength -- closed at its strongest level in a decade on Thursday amid dwindling fuel inventories.