2023.06.0919:15:00UTC+00Crude Oil Sees Further Downside Amid Ongoing Demand Concerns

After ending the previous session off its worst levels but still notably lower, the price of crude oil saw further downside during trading on Friday.

Crude for July delivery slumped $1.12 or 1.6 percent to $70.17 a barrel after tumbling $1.24 or 1.7 percent at $71.29 a barrel during Thursday's trading.

The continued weakness in the price of crude oil reflected ongoing concerns about the outlook for demand ahead of several key central bank meetings next week.

"Next week will be big for oil as we get a few major central bank rate decisions that should determine the short-term outlook for the global economy," said Edward Moya, senior market analyst at OANDA.

"China may cut rates, the Fed could deliver a hawkish skip, and the ECB is still playing catch up with their tightening cycles," he added. "Oil will eventually trade higher when stockpiles are at uncomfortably low levels."

The Federal Reserve's monetary policy meeting is likely to be in the spotlight, with the U.S. central bank expected to pause its recent interest rate increases.

Traders are likely to pay close attention to the Fed's accompanying statement as well as key inflation due next week for clues about the outlook for rates.