Concern over rising interest rates cooling the economy forced oil into its second weekly decline, even as it inched up $3 per barrel Friday.

Brent crude rose $3.07, or 2.8%, to land at $113.12 per barrel, as US benchmark WTI crude rose $3.35, or 3.2% to $107.62.

John Kilduff, partner at Again Capital LLC in New York said the Fed, “was talking very hawkish which was undermining the oil rally, but sentiment is changing a little especially on strong economic data.”

Fed Chair Jerome Powell has called the Fed’s commitment to taming inflation “unconditional,” implying the Fed is willing to endure unemployment and economic slowdown in order to see prices begin to level off. Many have read into that a tacit implication we may be heading to a recession.

Meanwhile consumer sentiment was shown to hit a record low in June in a new survey, making some think an economic slowdown is right around the corner.

As producers began to amp up production to meet increasing demand as the world came out of lockdown, Russia’s invasion of Ukraine threw global oil supply chains into turmoil driving oil up just below a $147 per barrel record price from 2008.

Meanwhile unrest in Libya has shut off almost all of the nation’s production as two men each claim to be the rightful President of the African nation, and they each exert their influence by shutting down parts of the nation, shutting off one million barrels per day.

Stephen Brennock of oil broker PVM said, “the consensus remains that the oil market will see high demand and tight supply over the summer months, thereby limiting the downside.”

OPEC+ will meet again on June 30th, where experts predict they will only slightly accelerate production in July and August.

Energy services firm Baker Hughes Co said in a report on Friday that energy firms are adding oil and gas rigs for a second week in a row, producing a 23 month streak of increases as they try to drill new supply to meet the current demand.

US oil inventory figures were delayed a week due to technical difficulties.