Oil retreated post prior earnings on Friday, following the way towards the second weekly slump, triggered by worries of slipping demand in China and the possibility of aggressive rate hikes.

Brent crude slipped 0.4% at $89.42, while WTI dropped at $81.60.

It is alleged by multiple sources that China that has been seeing a surge in covid infected cases daily, may consider shrinking crude imports from many suppliers.

The week has been prevailed with recession worries, nevertheless EU embargo on Russian crude that will be implemented next month on the 5^th and with OPEC shrinking supply.

The premium of nearby Brent futures over barrels loading in six months slumped by $4.16 per barrel, hitting a lowest level since August, which refers to slight concern over the future supply.

Based on Reuters poll, it is forecasted that fed will hike interest rates by 50 bps in December post raising rates by 75 bp for four times in a row.