By Gina Lee

Investing.com – Oil was down on Friday morning in Asia, after rising to seven-year highs earlier in the week. Investors also digested an.

The price of oil dropped 1.95% to $86.66 at 11:56 ET (at 4:56 GMT), and fell by 2.17% down to $83.69.

The black liquid’s recent rally appeared to run out of steam on Thursday when Brent and WTI futures ended the session with slim losses. As supply worries increased, they have seen a 10% gain so far in 2022.

Hiroyuki Kikukawa, Nissan Securities’ general manager for research, stated that investors made “short-term adjustments” to their positions following an increase in U.S. inventories and the weekend.

Investors digested Thursday’s , which showed a build of 515,000 barrels. Investing.com forecasts a draw of 938,000 barrels, while a draw of 4.553 million barrels was made during the week before.

Released the previous day, it showed a build up of 1.404million barrels.

The trend was downward for global shares, and Asian shares fell on Friday. Investors are increasingly anticipating that the central banks will raise interest rates by 2022 in an effort to reduce high inflation. Crude markets also suffered.

According to Sunward Trading’s chief analyst Chiyoki, “Slumping stock market amid fears that the U.S. Federal Reserve might aggressively move up rates this year also weighed down sentiment,” Chen said to Reuters.

After the Houthi attack on the United Arab Emirates by the Yemeni group, OPEC’s third-largest oil producer, supply worries were high during the week. Tensions between the U.S. and Russia are rising as Russia, second largest oil producer in the world, increases its troop presence close to Ukraine’s borders. This fuels fears of an armed conflict.

The International Energy Agency stated Wednesday that the oil supply would soon surpass demand, as producers are preparing to increase their production at all-time highs. The spread of the omicron-COVID-19 variant is not affecting fuel demand.