Oil plunged on Friday as poorer economic outlook and the possibility of additional interest rate increases dampened confidence, outweighing a tighter market in the second half of the year due to greater Chinese demand and OPEC+ production cuts.

Brent crude slipped 0.7% $75.18 per barrel meanwhile US WTI dipped 0.9% to $69.99 per barrel.

Next week, the Bank of England will increase interest rates by a quarter of a percentage point. On Thursday, the European Central Bank increased interest rates to a level not seen in 22 years, while the U.S. Federal Reserve hinted at at least a half-percentage-point increase by year's end.

Increased interest rates may impede economic expansion and lower oil demand. However, following drops in the previous two weeks, both oil benchmarks were poised for a modest weekly increase.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies enacted voluntary cutbacks to their oil output in May, and Saudi Arabia added a second cut in July, which will limit supply even as Chinese demand increases.