(Bloomberg) -- Oil fell for the first time in three days, paring a second weekly gain, as concerns about the impact on demand of the rapidly spreading omicron strain of coronavirus and tighter monetary policy played off against positive U.S. inventory data and a weakening dollar.
Futures in New York declined 0.6% after rising 2.1% on Thursday. The Bank of England on Thursday unexpectedly raised interest rates for the first time since the pandemic struck in a sign that inflation is now of bigger concern to leading central banks than the coronavirus.
This week has seen traders hit with conflicting signals on demand and supply, ranging from the central bank moves and new restrictions to limit the spread of omicron to declining inventories in the U.S. and forecasts that prices and volatility will rise in the New Year. That has seen a generally risk-off attitude in oil markets, leading the aggregate volume of futures contracts on Thursday to drop to its lowest since August.
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