Investing.com– Oil prices fell Friday, on course for a third consecutive losing week as concerns over sluggish demand conditions in Asia weighed.

At 09:00 ET (13:00 GMT), fell 0.9% to $81.62 a barrel, and dropped 0.8% to $77.66 a barrel.

Crude set for third straight week of losses

Both benchmarks are on course for another losing week, the third in succession, with down just under 1% and WTI nearly 3% lower.

Persistent concerns over slowing growth and demand in top importer China have been the dominant factor, part triggered by GDP data from last week, which showed the Chinese economy grew less than expected in the second quarter.

Additionally, more data this week showed the country’s apparent oil demand fell 8.1% to 13.66 million barrels per day in June.

Beijing unexpectedly cut a swathe of lending rates this week, further trying to loosen monetary policy amid growing concerns over sluggish growth. 

Apart from China, uncertainty over Japan also grew following middling , while weak activity data in Europe also pointed to economic woes.  

Gaza ceasefire in focus

Also weighing on the crude market have been increasing hopes of a ceasefire in Gaza.

The leaders of Australia, New Zealand and Canada called for an immediate ceasefire in a joint statement on Friday, while U.S. Vice President Kamala Harris has pressed Israeli Prime Minister Benjamin Netanyahu to help efforts at reaching a deal, striking a tougher tone than President Joe Biden.

A ceasefire has been talked about for months, but if it was to occur then some of the risk premium could be removed from the market.

Strong US GDP, rate cut hopes offer some support 

On the flip side,  data, released on Thursday, showed that the U.S. economy grew more than expected in the second quarter, despite pressure from high rates and relatively sticky inflation.

The reading drove up hopes that the world’s biggest fuel consumer was headed for a “soft landing,” where economic growth remained steady while inflation eased. 

These hopes were also lifted by the data showing overall U.S. inflation cooled as expected in June.

According to data from the Bureau of Economic Analysis, the  (PCE) price index slipped to 2.5% in June, from 2.6% the prior month. .

Stripping out volatile items like food and fuel, the year-on-year “core” gauge, widely known as the Fed’s preferred gauge of inflation, remained at 2.6%, only marginally above the Federal Reserve’s 2% target.

This sparked increased optimism over a potential interest rate cut by the Federal Reserve in September.

Data showing steady drawdowns in U.S. also offered some positive cues to oil markets, as fuel demand in the country remained robust amid the travel-heavy summer season. 

(Ambar Warrick contributed to this article.)