Oil prices dip, pausing after previous session’s surge

Oil prices dipped slightly in early Friday trade, following Thursday’s 3% surge resulting from news of China’s increased oil refinery throughput indicating higher demand. However, a weak economic outlook persistently looms over market sentiment, with concerns about slower US and European economies and reduced oil demand. The European Central Bank (ECB) raised interest rates as expected on Thursday, signalling further policy tightening. The dollar hit a five-week low on Thursday, but edged up in early trade yesterday, making oil more expensive for holders of other currencies.